The Determinants of the Life Cycle Stages of Brazilian Public Companies: A Study Based on Financial-Accounting Variables

ABSTRACT This paper analyses the relation between firms' life cycles stages according to Dickinson's (2011) definition and accounting and financial ratios. We applied multinomial logistic regression analysis on a sample of 1,515 observations of public companies listed on BM&FBOVESPA be...

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Bibliographic Details
Published in:Brazilian business review 2017-06, Vol.14 (3), p.304-320
Main Authors: Costa, Wando Belffi da, Macedo, Marcelo Alvaro da Silva, Yokoyama, Karen Yukari, Almeida, José Elias Feres de
Format: Article
Language:Portuguese
Subjects:
MANAGEMENT
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Summary:ABSTRACT This paper analyses the relation between firms' life cycles stages according to Dickinson's (2011) definition and accounting and financial ratios. We applied multinomial logistic regression analysis on a sample of 1,515 observations of public companies listed on BM&FBOVESPA between 2005 and 2012. Based on the literature about firms' life cycle stages (YAN; ZHAO, 2010; MILLER; FRIESEN, 1984; FAMA; FRENCH, 2001) the accounting and financial ratios used were dividends distribution, leverage, market-to-book, return on equity, firm size and revenue growth. The results show that leverage, dividends distribution, market-to-book, return on equity, firm size and revenue growth could be used as explanatory factors to classify firms' life cycle stages.
ISSN:1808-2386
1808-2386
DOI:10.15728/bbr.2017.14.3.3