Search results

1 – 10 of over 36000
To view the access options for this content please click here
Article
Publication date: 26 May 2021

Ajid Ur Rehman, Tanveer Ahmad, Shahzad Hussain and Shoaib Hassan

The purpose of this paper is to investigate how corporate cash holdings changes across firm life cycle and how firms undergo heterogeneous dynamic cash adjustment as they…

Abstract

Purpose

The purpose of this paper is to investigate how corporate cash holdings changes across firm life cycle and how firms undergo heterogeneous dynamic cash adjustment as they advance from one stage to the next stage.

Design/methodology/approach

This study uses an extensive data set of 2,994 Chinese A-listed firms. The authors use generalized method of moments (GMM) and Fisher Panel unit root testing to investigate the targeting behavior of Chinese firms.

Findings

The uni-variate investigation reveals that firms in the growth stage exhibits the highest cash levels and firms in the decline stage report the lowest cash levels. As growth firms have high investment needs, they may require raising external capital to meet investment needs. To avoid the costly external financing, firms in growth stage tend to hold more cash. The GMM estimation reveals that along all the phases of firm life cycle there are evidences of trade-off behavior of corporate cash holdings. The authors report that adjustment rate increases as firms enters into the growth stage.

Practical implications

The findings provide both theoretical and practical insight to align cash policies with the available strategic choices along firm life cycle in an emerging market characterized by market imperfections.

Originality/value

The study is unique from the context that it is applying robust methodology to one of rarely investigated area in corporate cash policy. The peculiar Chinese study setting characterized by higher information asymmetry, high cost of external financing and heterogeneous access to financing sources provide theoretical and empirical underpinnings to investigate and gain insight about how corporate cash policy can be aligned with strategic choices available across different stages of life cycle.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

To view the access options for this content please click here
Book part
Publication date: 12 November 2016

Haiyan Zhou, Hanwen Chen and Zhirong Cheng

In this paper, we investigate whether internal control and whether corporate life cycle would affect firm performance in the emerging markets of China.

Abstract

Purpose

In this paper, we investigate whether internal control and whether corporate life cycle would affect firm performance in the emerging markets of China.

Methodology/approach

We use Chen, Dong, Han, and Zhou’s (2013) internal control index on the effectiveness of internal control and Dickinson’s (2011) definition on firm life cycle. We use multivariate regression analysis.

Findings

We find that the internal control improves corporate performance. When dividing firm life cycle into five stages: introduction, growth, mature, shake-out and decline, we find that the impacts of internal control on firm performance vary with different stages. The positive impact of internal control on firm performance is more significant in maturity and shake-out stages than other stages.

Research limitations/implications

Our findings would have implications for the regulators and policy makers with regards to the importance of internal control in corporate governance and the effectiveness of implementing standards and guidelines on internal control in public firms.

Practical implications

In addition, our findings on the various roles of internal control at different stages of firm life cycle would help managers and board of directors find more focus in risk management and board monitoring, respectively.

Originality/value

Although the prior literature have examined the link between internal control, information quality and cost of equity capital (Ashbaugh-Skaife, Collins, Kinney, & LaFond, 2009; Ogneva, Subramanyam, & Raghunandan, 2007), our study would be the first attempt to investigate the link between internal control and firm performance during different stages of firm life cycles.

Details

The Political Economy of Chinese Finance
Type: Book
ISBN: 978-1-78560-957-2

Keywords

To view the access options for this content please click here
Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance…

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

To view the access options for this content please click here
Article
Publication date: 9 March 2021

Tifanny Dwijaya Hendratama and Yu-Chuan Huang

This study extends related research on corporate social responsibility (CSR) into the less-researched realm of Southeast Asia setting by investigating the role of life

Abstract

Purpose

This study extends related research on corporate social responsibility (CSR) into the less-researched realm of Southeast Asia setting by investigating the role of life cycle stages on the relationship between CSR and firm value.

Design/methodology/approach

This study uses a sample of 1,247 firm-year observations of firms listed in Southeast Asia from 2012 to 2018. Descriptive, multiple regression and sensitivity analyses are presented in the study.

Findings

The results provide evidence that although CSR and firm value, in general, have a positive relationship, the relationship is contingent on the stages of firm's life cycle. The effect of each CSR dimension on firm value differs across life cycle stages. The social dimension of CSR predicts higher firm value at the introduction and mature stages. The governance dimension affects firm value at the growth and shake-out/decline stages. Moreover, the environmental dimension affects firm value only at the later stage of the life cycle.

Research limitations/implications

This study is limited to five countries in Southeast Asia, namely Indonesia, Malaysia, Philippines, Singapore and Thailand from 2012 to 2018. Future studies may explore other countries and investigate the impact of country classification on the relationship between CSR and firm value.

Practical implications

Policymakers, managers and other decision-makers may have a better understanding of firm's behavior in different life cycle stages. With such understanding, CSR will be successfully adopted in decision making, formulation and implementation of policies.

Originality/value

CSR-related research in Southeast Asia remains an under-studied domain, and little attention has been dedicated to different dimensions of CSR and life cycle in the area of CSR-related preference for decision making.

Details

Journal of Applied Accounting Research, vol. 22 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1997

Lisa Michelle Grantham

Posits that, as the pace of change has accelerated rapidly and created unprecedented uncertainty in the markets of this decade, many companies have needed to dispense with…

Abstract

Posits that, as the pace of change has accelerated rapidly and created unprecedented uncertainty in the markets of this decade, many companies have needed to dispense with existing, once reliable, practices in order to remain competitive. Suggests that the efficacy of one particular marketing tool, the product life cycle model, has been questioned, by various writers in the academic and business press, with regard to the general applicability and validity of its assertions and the claim it makes to be able to predict the marketing strategies that should be applied at different stages of a product’s life. Explores the arguments for and against the validity of the product life cycle model as a marketing tool in this present, dynamic environment.

Details

Marketing Intelligence & Planning, vol. 15 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

To view the access options for this content please click here
Article
Publication date: 4 April 2016

Jernej Belak

The behaviour of an enterprise (including ethical behaviour) strongly depends on the organization’s culture, values and beliefs. The purpose of this paper is to…

Abstract

Purpose

The behaviour of an enterprise (including ethical behaviour) strongly depends on the organization’s culture, values and beliefs. The purpose of this paper is to demonstrate that organizational culture differs according to enterprise life cycle stage. Also the importance of the knowledge and awareness of these differences to enterprises’ management in order to be able to ensure enterprises’ success is argued.

Design/methodology/approach

The case study research methodology was applied to explore the differences in the type of organizational culture as well as cultural strength depending on the enterprise’s life cycle stage. For the empirical testing, the author have selected Slovenia, one of the most developed European post-socialist transition countries.

Findings

The research revealed differences in the types and strengths of enterprises’ organizational cultures and showed their dependence on the enterprises’ life cycle stages.

Practical implications

Knowledge of differences in organizational culture in relation to an enterprise’s life cycle stage can significantly contribute to the behaviour of the enterprise’s key stakeholders by ensuring the long-term and sustainable success of the enterprise.

Originality/value

The available literature does not provide similar research of differences in organizational culture in relation to an enterprise’s life cycle stages.

Details

Kybernetes, vol. 45 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

To view the access options for this content please click here
Article
Publication date: 21 November 2008

Donald L. Lester, John A. Parnell, William “Rick” Crandall and Michael L. Menefee

This exploratory study seeks to bridge a gap in the literature by exploring the life cycle‐strategy relationship to discover the preferred strategy for high and low…

Abstract

Purpose

This exploratory study seeks to bridge a gap in the literature by exploring the life cycle‐strategy relationship to discover the preferred strategy for high and low performing firms in four of the five stages of the organizational life cycle.

Design/methodology/approach

In total, 600 managers randomly chosen from chamber of commerce membership lists in the southern USA were mailed an extensive scale that included items to measure life cycle stage, generic strategy, industry attractiveness and stability, size, and satisfaction with performance. The instrument included 20 lifecycle items, four items for each of the five stages.

Findings

Partial support was found for the expected relationship between strategy and performance as firms move through the organizational life cycle. New, high‐performing organizations that were satisfied with their performance preferred first mover strategies, while renewing organizations categorized as high performers also emphasized the first mover strategic approach. Mature high performers preferred a uniqueness strategy over one based on efficiency.

Research limitations/implications

The fifth proposition, concerning declining firms, could not be adequately tested. Other limitations of this study include the limited sample size, the limited size variance of participating firms, and the cross‐industry nature of the sample. Combining the research stream of organizational life cycle with generic strategies and satisfaction with performance complicated the project.

Practical implications

Life cycle and performance research provides managers with a snapshot of high and low performing firms and an understanding of how their situation, decision‐making style, strategy and structure fit. High performers focus on proactive, first mover strategies.

Originality/value

The organizational life cycle is operationalized, demonstrating characteristics for high and low performing firms in each stage except decline.

Details

International Journal of Commerce and Management, vol. 18 no. 4
Type: Research Article
ISSN: 1056-9219

Keywords

To view the access options for this content please click here
Article
Publication date: 7 March 2008

Hanna Silvola

This study aims to describe and explain the design of management accounting and control systems (MACS) in the growth and revival stages of the organizational lifecycle of…

Abstract

Purpose

This study aims to describe and explain the design of management accounting and control systems (MACS) in the growth and revival stages of the organizational lifecycle of the firm. In addition, it explores how the presence of equity capital investors affects the design of MACS in the case firm in its growth and revival stages.

Design/methodology/approach

A case study method is adopted to illustrate the design of MACS in the growth and revival stages. The data are analyzed to describe events in the two organizational lifecycle stages, which are then compared to identify special features of the design of MACS.

Findings

The results show that, in contrast to a growth stage, a revival firm develops MACS for the firm's internal managerial and organizational purposes, such as a more diversified business strategy and more diversified organizational structure, as well as for external reasons, such as a more challenging business environment and investors' requirements. Investors require more detailed management accounting information to know how to get a better return on their investments in a revival stage, while investors ensured that the case firm was only using formal MACS in a growth stage.

Research limitations/implications

The lifecycle approach is the main perspective in data gathering even though this may bias the data. Therefore, not everything may be observed. Even though Friesen and Miller's lifecycle model allows firm to be established through a merger of several declining firms, the birth of the case firm differs from a typical birth of the firm. This study is exploratory in nature, suggesting new insights that could be followed up in future research.

Practical implications

The information produced by MACS is, at a minimum, equally important in the revival stage as in the growth stage even though MACS are used for different reasons. Therefore, MACS cannot be used in the same way in the revival stage as in the growth stage.

Originality/value

The study describes and explains the design of MACS by comparing the growth and revival stages, while the accounting literature does not traditionally distinguish between growth and revival stages in this respect.

Details

Qualitative Research in Accounting & Management, vol. 5 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

To view the access options for this content please click here
Article
Publication date: 20 November 2017

Liang Wang

The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.

Abstract

Purpose

The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.

Design/methodology/approach

The paper relies on literature review and conceptual analysis.

Findings

It generates a dynamic geographic concentration model (i.e. an industry’s degree of geographic concentration drops in the growth stage, rises in the mature stage, and drops again in the new growth stage) and a localized industry life-cycle model (i.e. temporal dynamics differ between the center and the periphery).

Originality/value

It makes contribution by theorizing that the extent to which an industry is geographically concentrated changes over time, and by demonstrating how an industry’s center and periphery may experience different temporal dynamics.

Details

Journal of Strategy and Management, vol. 10 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

To view the access options for this content please click here
Article
Publication date: 1 September 1991

Lisa M. Ellram

The use of a lifecycle framework is explored as a means ofdescribing the evolution of partnership relationships between industrialbuyers and sellers. Based on case…

Abstract

The use of a lifecycle framework is explored as a means of describing the evolution of partnership relationships between industrial buyers and sellers. Based on case studies of eight manufacturing firms, industrial buyer‐seller partnerships evolve through four stages: development, commitment, integration and dissolution. In addition to exploring a “traditional” lifecycle pattern, case studies are used to illustrate and support examples of variations on the traditional partnership lifecycle pattern. The lifecycle analogy is useful to both practitioners and theorists in developing, understanding and influencing the patterns which industrial buyer‐seller partnerships may follow.

Details

International Journal of Physical Distribution & Logistics Management, vol. 21 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

1 – 10 of over 36000