Life Cycle Stages Effects on Profitability and Growth of Enterprise Companies
Business enterprises follow the life curve like other live organisms. Economic theories denote that firms can even be born, grow, and after a while die. According to the evidence, it is obvious that operational profit with its components (such as margin of operational profit and assets turnover) sho...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Alzahra University
2011-12-01
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| Series: | پژوهشهای تجربی حسابداری |
| Subjects: | |
| Online Access: | http://jera.alzahra.ac.ir/article_531_0d5e4c12ec0cc1f21ddf903a80dfff0d.pdf |
| Summary: | Business enterprises follow the life curve like other live organisms. Economic theories denote that firms can even be born, grow, and after a while die. According to the evidence, it is obvious that operational profit with its components (such as margin of operational profit and assets turnover) show a non-linear behavior during various stages of companies' life cycle. In this paper we consider to show that how this economic variable affects the growth and profitability of listed companies on Tehran Stock Exchange (TSE), using yearly data from 2000 until 2010.The test sample was 149 firms that has been listed on TSE before 2000.
To examine the research hypotheses we used survey based analysis and multi regression models, applying panel data and Wilcoxon rank sum test. Based on our findings hypotheses have not been rejected and confirm the efficiency of life cycle in financial analyses. However, the models have had a 40% enhancement in the ability of estimating, by calculating the life cycle variable into profitability predictor models |
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| ISSN: | 2251-8509 2538-1520 |