Misbah Wadood (Department of Accounting and Finance, Faculty of Management Sciences, International Islamic University Islamabad, PAKISTAN, and
Department of Management Sciences, COMSATS University Islamabad, PAKISTAN),
Hashim Khan, Muhammad Amir Alvi (Department of Management Sciences, COMSATS University Islamabad, PAKISTAN).
Disciplinary: Financial Management.
Keywords: Company's life cycle; Resource-based views; Retained earnings; Organizational capability; Equity cost; Information asymmetry.
The research paper focuses on a dynamic resource-based view that highlights a significant change in paths and patterns of the evolution in organizational capability through the life cycle stages. A sample of 830 Asian firms for 2006-2017 is used for analysis. The paper reveals that the cost of equity capital is negatively associated with retained earnings. In the second stage, the study also highlights that cost of equity capital turns out to be lower in the growth and maturity stages and there is a significant difference in determinants of the cost of equity capital during different stages of the life cycle.
Paper ID: 11A15C
Cite this article:
Wadood, M., Khan, H., Alvi, M.A. (2020). Does Firm's Life Cycle Stages Affect the Cost of Equity Capital in Asia?.International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 11(15), 11A15C, 1-10.
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