According to Agency Theory and Neoclassical Theory; New Ownership and Diversity of Public Sector Companies in Corporate Life Cycle
Journal Title: Advances in Mathematical Finance and Applications - Year 2018, Vol 3, Issue 1
Abstract
The purpose of this study is investigating and determining rate of seizing assets and acquisition other companies by public sector companies. We estimate this rate at various stages of the life cycle of the company. Therefore, according to their size and age, the companies have been divided into small, large, young, and mature groups, and for this purpose, we have collected data from a sample of 45 companies of the public sector from three Iranian provinces. We have tested our analyses from the viewpoints of agency and neoclassical theories and discussed the results of the independent t-tests. The results showed that with an increase in age and size, public sector companies are more likely to seize the fixed assets of other companies to restructure and achieve improved operations. However, in the case of assuming ownership of other companies done through buying the companies, most public sector companies do this in the middle of their lifetime and in the course of their growth.
Authors and Affiliations
Abdollah Tavassoli, Parviz Saeedi, Bahram Biglari
Keywords
Related Articles
- EP ID EP421293
- DOI 10.22034/AMFA.2018.539131
- Views 78
- Downloads 0
Studying the Role of Marketing Intensity on the Relation of Financial Leverage and Firm Function
Choosing the financial supply is one of the most important decisions for providing optimal structure that can be effective for firm value and stocks market of companies. Therefore, marketing as one of the abilities of th...
Examining the Relationship between Corporate Governance and the Corporate Performance Valuation
The aim of this study was to investigate the relationship between corporate governance characteristics and valuation of the firm's performance in Iran. After designing performance evaluation indexes, information of trans...
Evaluating the Performance of Forecasting Models for Portfolio Allocation Purposes with Generalized GRACH Method
Portfolio theory assumes that investors accept risk. This means thatin the equal rate of return on the two assets, the assets were chosenthat have a lower risk level. Modern portfolio theory is accepted byinvestors who b...
Effect of Information Delay on Joint Investment Fund's Performance
The aim of this study is to evaluate the effect of information delay on the performance of joint investment funds. In order to achieve the aim of this study sample consisted of twenty funds in the Tehran Stock Exchange f...
The Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)
According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets a...