Version 2 2024-06-13, 09:45Version 2 2024-06-13, 09:45
Version 1 2016-05-23, 16:33Version 1 2016-05-23, 16:33
journal contribution
posted on 2024-06-13, 09:45authored byR Faff, WC Kwok, EJ Podolski, G Wong
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.
History
Journal
Journal of banking and finance
Volume
69
Pagination
95-107
Location
Amsterdam, The Netherlands
ISSN
0378-4266
eISSN
1872-6372
Language
eng
Publication classification
C1 Refereed article in a scholarly journal, C Journal article