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, vol. 69, pp. 95-107, doi: 10.1016/j.jbankfin.2016.04.009.

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Title Do corporate policies follow a life-cycle?
Author(s) Faff, Robert
Kwok, Wing Chun
Podolski, Edward J.ORCID iD for Podolski, Edward J.
Wong, George
Journal name Journal of banking and finance
Volume number 69
Start page 95
End page 107
Total pages 13
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2016-08
ISSN 0378-4266
Keyword(s) Life-cycle theory
Investment decisions
Financing decisions
Cash policy
Summary 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.
Language eng
DOI 10.1016/j.jbankfin.2016.04.009
Field of Research 150201 Finance
0102 Applied Mathematics
1502 Banking, Finance And Investment
Socio Economic Objective 900101 Finance Services
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Elsevier
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Document type: Journal Article
Collections: Faculty of Business and Law
Department of Finance
2018 ERA Submission
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