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The impact of corporate life cycle on the capital structure of German listed companies

Ambalavanar, Nirojan (2019) The impact of corporate life cycle on the capital structure of German listed companies.

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Abstract:In this research, the relationship between corporate life cycle and capital structure of German listed non-financial companies is examined. The corporate life cycle is divided into Growth, Maturity and Decline life cycle stages. Both ordinary least squares (OLS) and fixed effects regressions are conducted in order to examine the direct impact of the corporate life cycle stages on the capital structure of the German listed non-financial companies in the period of 2009 until 2017. The final sample of this research consists of 361 listed German non-financial companies. The main findings of this research support partially the predictions that the leverage ratios will follow a U-shaped (high-low-high) pattern along the corporate life cycle of the sample companies. Therefore, this research extends the life cycle literature by directly examining the role of corporate life cycle in influencing the capital structure. There is namely little research conducted with a focus on the direct impact of the corporate life cycle stages on the capital structure of the companies.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Keywords:Corporate life cycle, Corporate life cycle stages, Capital structure, Leverage, Germany, Llisted companies, Non-financial companies, After crisis
Link to this item:http://purl.utwente.nl/essays/78645
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