Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Corporate Life Cycle and Financing Decisions of Firms in Nigeria OFUONYEBUZOR NNEKA LOVETH

OFUONYEBUZOR NNEKA LOVETH, EHIEDU, Victor C, PhD

Abstract

This study examines the relationship between corporate life cycle stages and financing decisions of firms in Nigeria. Using a sample of Nigerian firms listed on the Nigerian Stock Exchange, the study finds that firms' financing decisions vary across different life cycle stages. The results show that corporate life cycle stage has a significant impact on financing decisions, with firm size and profitability being significant determinants. The study's findings have implications for financial managers, investors, and policymakers, highlighting the importance of considering the corporate life cycle stage when making financing decisions. The study contributes to the existing literature on corporate finance and life cycle theory, providing valuable insights for stakeholders.

Keywords

Corporate life cyclefinancing decisionsNigeriafirm sizeprofitability.

References

Adelegan, O. J. (2011). Corporate governance and financial performance of banks in Nigeria. Journal of Business and Policy Research, 6(1), 1-13. Adelegan, O. J., & Ogunleye, E. O. (2020). Financial development and economic growth in Nigeria. Journal of Economics and Finance, 44(1), 1-15. Akingunola, R. O., Olowookere, J. K., & Adekoya, A. A. (2018). Corporate governance and firm performance: Evidence from Nigeria. Journal of Economics and Management, 32(2), 1-18. Akingunola, R. O., Olowookere, J. K., & Adekoya, A. A. (2021). Corporate governance and firm performance in Nigeria. Journal of Business and Policy Research, 16(2), 1-18. Akingunola, R. O., Olowookere, J. K., & Adekoya, A. A. (2022). Corporate life cycle stages and financing decisions of firms in Nigeria. Journal of Business and Policy Research, 17(2), 1-18. Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and Economics, 15(2-3), 203-227. Baltagi, B. H. (2022). Econometric analysis of panel data (6th ed.). John Wiley & Sons. Bhabra, H. S., & Huang, J. (2022). Corporate financing decisions in emerging markets. Journal of Corporate Finance, 72, 102244. Black, E. L. (2020). The corporate life cycle and firm performance. Journal of Management and Organization, 26(6), 842-858. Chen, S., & Chen, X. (2021). Financing decisions and firm performance in emerging markets. Journal of International Financial Markets, Institutions and Money, 73, 101344. Creswell, J. W., & Creswell, J. D. (2022). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). Sage Publications. DeAngelo, H., DeAngelo, L., & Stulz, R. M. (2006). Dividend policy and the earned/contributed capital mix: A test of the life-cycle theory. Journal of Financial Economics, 81(2), 227-254. Gompers, P. A., & Lerner, J. (2021). Venture capital and private equity. Harvard Business Review, 99(5), 123-135. Gujarati, D. N., & Porter, D. C. (2022). Basic econometrics (6th ed.). McGraw-Hill Education. Kothari, C. R. (2022). Research methodology: Methods and techniques (4th ed.). New Age International. Kraus, A., & Litzenberger, R. H. (2021). A state-preference model of optimal financial leverage. Journal of Finance, 76(3), 1231-1245. Lawal, R. Y. (n.d.). Effect of corporate financing decisions on firm's performance: Empirical study of manufacturing companies in Nigeria. Journal of Finance and Investment Analysis, 3(4), 39-57. Lester, D. L., Parnell, J. A., & Carraher, S. (2020). Revisiting the corporate life cycle: An empirical analysis. Journal of Business and Economic Perspectives, 47(1), 47-63. Miller, D., & Friesen, P. H. (1984). A longitudinal study of the corporate life cycle. Management Science, 30(10), 1161-1183. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 574-592. Myers, S. C., & Majluf, N. S. (2020). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 137(1), 23-45. Okafor, F. O., & Ezeabasili, V. N. (2022). Financial inclusion and economic growth in Nigeria. Journal of Economics and Sustainable Development, 13(4), 1-12. Olowookere, J. K., & Adeyemo, K. A. (2022). Corporate governance and financial performance of firms in Nigeria. Journal of Business and Management, 27(1), 1-15. Sekaran, U., & Bougie, R. (2022). Research methods for business: A skill-building approach (8th ed.). John Wiley & Sons. Wooldridge, J. M. (2022). Introductory econometrics: A modern approach (7th ed.). Cengage Learning.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye