The Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)

Advances in Mathematical Finance and Applications

مقاله 6، دوره 3، شماره 4، اسفند 2018، صفحه 83-100   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2018.577349.1124

نویسندگان

Ali Khamaki¹؛ Parviz Saeidi^{* 2}؛ Arash Naderian¹؛ Ali Khozain¹

¹Department of Accounting, Aliabad Katoul branch, Islamic Azad University, Aliabad Katoul, Iran

²Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Ali Abad Katoul, Iran.

چکیده

According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets and the optimal use of assets can considerably enhance the capital productivity. In the current study, the relationship between the stages of firm life cycle and capital productivity and mediation relationship of the capital investment choice in the two groups of companies have been examined, and methodically compared and contrasted. To examine the research hypothesis, the data were gathered from 118 companies accepted in Tehran Stock Exchange during a period of 7 years. Findings of the research clearly indicated that there is a positive relationship between introduction, growth and maturity stages with capital productivity in the cyclical and non-cyclical companies. Regarding the cyclical companies, a positive relationship was witnessed between the decline stage and capital productivity. Such a relation, however, was not found between the two variables in non-cyclical companies. Also, no significant relationship was observed among the stages of introduction, growth, maturity and the capital investment choice in both groups of companies. In non-cyclical companies, the relationship between the decline stage and the capital investment choice was positive, while there was no relationship between cyclical companies. Capital investment choice also failed to prove the assumed mediating role.

کلیدواژه‌ها

firm life cycle theory؛ Capital Productivity؛ capital investment choice؛ cyclical companies

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