Do corporate policies follow a life-cycle?

Faff, Robert, Kwok, Wing Chun, Podolski, Edward J. and Wong, George (2016) Do corporate policies follow a life-cycle?. Journal of Banking and Finance, 69 95-107. doi:10.1016/j.jbankfin.2016.04.009

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Author Faff, Robert
Kwok, Wing Chun
Podolski, Edward J.
Wong, George
Title Do corporate policies follow a life-cycle?
Journal name Journal of Banking and Finance   Check publisher's open access policy
ISSN 0378-4266
Publication date 2016-08-01
Year available 2016
Sub-type Article (original research)
DOI 10.1016/j.jbankfin.2016.04.009
Open Access Status Not Open Access
Volume 69
Start page 95
End page 107
Total pages 13
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Subject 2003 Finance
2002 Economics and Econometrics
Abstract We examine whether corporate investment, financing, and cash policies are interdependent and follow a predictable pattern in line with the firm life-cycle. We find that investments and equity issuance decrease with firm life-cycle, while debt issuance and cash holdings increase in the introduction and growth stages and decrease in the mature and shake-out/decline stages of the firm’s life-cycle. These results are robust after using various proxies for life-cycle and controlling for firm, CEO and board level characteristics. Collectively, our results show that corporate policies follow a firm life-cycle.
Keyword Life-cycle theory
Investment decisions
Financing decisions
Cash policy
Q-Index Code C1
Q-Index Status Provisional Code
Grant ID PJ98
G-YN 61
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 4 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 5 times in Scopus Article | Citations
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Created: Tue, 17 May 2016, 10:14:23 EST by System User on behalf of UQ Business School