International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies


:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

ISSN 2228-9860
eISSN 1906-9642


Vol.11(15) (2020)

  • Does Firm's Life Cycle Stages Affect the Cost of Equity Capital in Asia?

    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.

    ➤ FullText

    DOI: 10.14456/ITJEMAST.2020.291

    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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