IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 2 2025
DOI: 10.56201/jafm.vol.11.no2.2025.pg336.355

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The Impact of Corporate Life Cycle Stages on Financial Performance: Evidence from Nigeria Listed Firms

SamAleng Murna, Gimbiya Ibrahim, Joshua Christian Samari

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Abstract

This study examines the impact of corporate life cycle stages on the financial performance of listed manufacturing firms in Nigeria from 2012 to 2022, with financial performance measured by return on assets (ROA). Using Dickinson’s life cycle model, the corporate life cycle stages—firm introduction, growth, maturity, shake-out, and decline—were analyzed alongside firm size as a control variable. Secondary data from firms’ annual reports, prepared in accordance with International Financial Reporting Standards (IFRS), were employed. Robust regression techniques were used to address heteroscedasticity and ensure reliable statistical inferences. The results reveal that firms in the introduction, shake-out, and decline stages experience significant negative effects on financial performance, driven by high operational costs, competitive pressures, and market contractions. In contrast, the growth and maturity stages do not exhibit statistically significant effects, suggesting context-specific variations influenced by strategic decisions and external conditions. This study contributes to the literature by providing empirical evidence from an emerging market, highlighting the financial challenges and opportunities across life cycle stages. Practical recommendations include tailored strategies for each stage, such as innovation and cost management during early and declining phases, and policy support to foster financial stability. The findings have significant implications for managers, policymakers, and researchers seeking to optimize financial performance across life cycle transitions in dynamic and competitive environments.

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