Corporate Life Cycle Theory and Accounting Performance: Borsa Istanbul Case

Apply

Corporate Life Cycle Theory and Accounting Performance: Borsa Istanbul Case

Journal Title: Muhasebe ve Finansman Dergisi - Year 2018, Vol 20, Issue 78

Abstract

This study examines the association between accounting performance measures and stock returns with the corporate life cycle theory. Corporate life cycle stages which are derived from the product life cycle are the results from changes in the strategic activities of the firms. We use Anthony and Ramesh (1992) value relevance model to test whether the stock market responses to three accounting measures (sales growth, capital expenditures, and earnings) are the functions of life cycle concept. We choose 153 nonfinancial firms that operate on Borsa Istanbul for the years between 2006 and 2014 for the analyses. According to the results, three accounting performance measures that are unexpected sales growth, unexpected capital expenditures, and unexpected earnings are most (least) highly valued in growth (decline) stage. In addition, while technology and communication industries at the growth stage, metal industry, cement and glass products industry are at the decline stage.

Authors and Affiliations

Ömer Faruk Güleç, Semra KARACAER

Keywords

Deregulation Of The Electricity Market and Sustainable Prospects In The Electricity Industy

With the growing technology the magnitude of electric power is raised as a strategic raw material. Therefore global actors of electricity sector’s shares in Gross National Product increased. Despite the outgoing argument...

İşletmelerin Kurumsal Sosyal Sorumluluk Uygulamalarında Kurumsal Yönetim Yapılarının Etkisi: BİST 100 Üzerine Bir Uygulama

İşletmelerin toplum ve çevre bilinci ile faaliyetlerini sürdürmesini esas alan kurumsal sosyal sorumluluk uygulamaları, işletmelerin kurumsal yönetim anlayışının bir parçasıdır. Bu çalışmanın amacı Türkiye’de işletmeleri...

EP ID EP283074
DOI 10.25095/mufad.412716
Views 102
Downloads 0