A Dynamic Resourced Based View on Firms Life Cycle Stages and Capital Structure Theories: A Comparative Analysis of Developed and Emerging Asian Markets

Abstract

Dynamic resource-based view is the major inspiration for this study, which signifies the changes in paths and patterns of the evolution in organizational capabilities during its LCS. Using the Dickinson's (2011) firm's LCS, the study determined diverse behavior of traditionally established explanatory variables across stages. For the purpose of analysis GMM model has been used, the study conducted a comparative analysis of developed and emerging markets in Asia. The results showed higher COE capital during introduction and decline stages in emerging markets implying trade-off theory and dynamic resource-based view. Study denies association between COE capital and market-to-book value in developed markets in line with market timing theory Its concluded that COE's explanatory factors evolve across markets and firm's LCS the explanatory power of the general model is much higher when the study included LCS in its main model justifying resource-based view.

Healthcare Industries' Capital Structure Determinants: Evident Listed Companies on the Indonesian Stock Exchang

“…The Pecking Order Theory and the Trade-Off Theory are two well-known theories(El-Diftar, 2020). The First theory published in 1984 by Myers & Majluf was predicated on the asymmetry of information between investors and company administrators (Wadood et al, 2020). While this theory does not propose an ideal capital structure as a goal, it does advise the company to begin by prioritizing internal sources over external ones.…”