Private placements, market discounts and firm performance: the perspective of corporate life cycle analysis

Chuang, Kai-Shi

doi:10.1007/s11156-019-00798-4

Cited by 10 publications

(4 citation statements)

References 39 publications

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“…Companies with incomplete financial data will be excluded from the sample. This study aims to observe the effects of firm life cycle to firm's debt maturity structure, for that the empirical model used is stated as follows: This study follows previous studies (Ahmed et al, 2021;Alqahtani et al, 2022;Chuang, 2020;Park, 2021) to use the cash flow pattern in classifying the firms into 5 firm life cycle stages. Table 2 show the cash flow pattern criteria (Dickinson, 2011).…”

Section: Method Data and Analysismentioning

confidence: 99%

The Firm Life Cycle and Debt Maturity Structure: Evidence from ASEAN Countries

Juliana

2023

J. Keuang. dan Perbank.

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This study aims to examine the firm’s debt maturity structure policy across the firm life cycle stage in five ASEAN countries, namely Indonesia, Malaysia, Singapore, Thailand and Vietnam. The Firm life cycle stages are classified based on its cashflow pattern into four stages, namely introduction, growth, mature, and decline. The study was conducted using 2769 samples of non-financial listed companies in these five ASEAN countries in the period 2007-2020. The data analysis method used is a panel data model with a fixed effect. The results of the study from the research conducted show that the company's life cycle in the introduction and growth stages chooses to use long-term debt compared to companies in the mature and decline stages. It’s possible that during introduction and growth stages, firms are overloaded with many investment opportunities that they want to invest. Internal funds might not be enough for them and they opt to acquire external debt such as long-term debt. DOI: 10.26905/jkdp.v27i2.9958

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Section: Method Data and Analysismentioning

confidence: 99%

The Firm Life Cycle and Debt Maturity Structure: Evidence from ASEAN Countries

Juliana

2023

J. Keuang. dan Perbank.

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“…By summing the individual variable scores of the four indicators, a total score was generated, ranging from 4 to 12. A score of 10−12 was classified as the growth stage, 7−9 as the maturity stage, and 4−6 as the decline stage (Chuang, 2020;Li and Zhang, 2018). Data for the four indicators was obtained from the CS-MAR database.…”

Section: Methodsmentioning

confidence: 99%

“…We follow prior studies that often adopt three stages – an (initial and rapid) growth stage that involves birth, a maturity stage, and a decline stage that includes any revival – in investigating the relationship (Elsayed and Paton, 2009; Li and Zhang, 2018; Chuang, 2020). By taking into account the dynamic features of a system, we contend that the relationship between supplier instability and CSR performance (ICSR and ECSR) is not static but varies across the lifecycle stages of the growth, maturity, and decline of a firm.…”

Section: Background and Hypothesis Developmentmentioning

confidence: 99%

The Impact of Supplier Instability on Corporate Social Responsibility Performance over the Firm Lifecycle: A Social Systems Theory Perspective

Yang

Yan

Jia

et al. 2022

British J of Management

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Managing corporate social responsibility (CSR) in the supply chain context requires companies to consider complex issues embedded in their supply chains, one of which is the complexity caused by unstable suppliers. However, prior studies have focused primarily on how supplier instability affects a firm's operational or financial performance. Grounded in social systems theory, we aim to enrich this body of literature by investigating the impact of supplier instability on CSR performance throughout the firm lifecycle. Using a large panel dataset of Chinese manufacturing firms from 2008 to 2018, we find that the relationship between supplier instability and CSR performance varies throughout a firm's lifecycle. At the growth and maturity stages, supplier instability can negatively affect a firm's external and internal CSR performance, respectively. At the decline stage, this negative relationship is insignificant. Further, we unravel the moderating effects of different complexity reduction practices. This paper has significant implications for both research and practice in the increasingly important domain of CSR management in supply chains.

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“…The introduction phase is when the company begins to start their businesses' operation and launch new products or services through innovative technologies (Gort and Klepper, 1982). Young firms like start-ups are dependent on debt support, despite the high cost of debt, due to the high growth potential and investment opportunities, but limited internal resources (Chuang, 2020;La Rocca et al, 2007). Next, in the growth phase, the company will experience rapid sales growth, increase market demand, and enjoy the initial product-market success (Miller and Friesen, 1984).…”

Section: Introductionmentioning

confidence: 99%

Firm Life Cycle and Investment Inefficiency: Empirical Study in Indonesian Stock Exchange

Graciosa

Gracia

Juliana

2020

jasf

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This paper investigates whether the firm's life cycle stages carry out free cash flow efficiently or not before their investment performance. We utilize cash flow patterns to classify firms into five several life cycles stages. Our data consists of non-financial firms listed in Indonesia Stock Exchange from 2008-2018. We find evidence that Indonesian firms in the introduction, growth, and shakeout stage are underinvesting. This paper also shows that firms in decline stage are overinvested. The characteristic of the mature firm includes that firms with high cash flow will tend to overinvest. However, contrasting with mature firms' common characteristics, our results show that Indonesian firms in maturity stage tend to underinvest. The results also imply that the government should acknowledge the existence of Indonesian firms' investment inefficiency problem. Overall, this paper contributes to the literature by providing empirical evidence on Indonesia's investment inefficiency phenomena. It is suggested that further research may select a different method in calculating growth opportunities and may also study private firms since it tends to have higher financial constraints.

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Private placements, market discounts and firm performance: the perspective of corporate life cycle analysis

Cited by 10 publications

References 39 publications

The Firm Life Cycle and Debt Maturity Structure: Evidence from ASEAN Countries

The Firm Life Cycle and Debt Maturity Structure: Evidence from ASEAN Countries

The Impact of Supplier Instability on Corporate Social Responsibility Performance over the Firm Lifecycle: A Social Systems Theory Perspective

Firm Life Cycle and Investment Inefficiency: Empirical Study in Indonesian Stock Exchange

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