Capital structure and the firm’s life stage

A. Frielinghaus · Colin Firer

91 citations0/0 files storedSouth African Journal of Business Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Analysis and Corporate Governance Working Capital and Financial Performance

Abstract

In this paper we argue the case for a relationship between capital structure and a firm’s life stage. We provide an overview of the two sets of theories and follow this with a proposed linkage between the life stage and capital structure. We use the Adizes life stage model to assess the life stage of the firms in our sample. Our pilot study found a statistically significant relationship between life stage and the capital structure of respondents. The nature of the relationship (more debt in the early and late life stages than in prime) supports the pecking order theory of capital structure and suggests a practical use of the life stage model in helping firms to understand how their financing is likely to change over time.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 91 citations exist upstream.

References

1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers 1958The Cost of Capital, Corporation Finance and the Theory of Investment 1996Agency costs of free cash flow, corporate finance, and takeovers 2008The cost of capital, corporation finance and the theory of investment 1984The Capital Structure Puzzle 1977The Determination of Financial Structure: The Incentive-Signalling Approach 2000Agency Costs and Ownership Structure 1984On the Existence of an Optimal Capital Structure: Theory and Evidence

Cited by

2011The Impact of Firm and Entrepreneurial Characteristics on Access to Debt Finance by SMEs in King Williams’ Town, South Africa 2012The Impact of Firm Characteristics in Access of Financing by Small and Medium-sized Enterprises in Tanzania 2016Target leverage and speed of adjustment along the life cycle of European listed firms 2015Business Life Cycle and Capital Structure: Evidence from Chinese Manufacturing Firms 2011The impact of inaccessibility to bank finance and lack of financial management knowledge to small, medium and micro enterprises in Buffalo City Municipality, South Africa

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.