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

Author

Listed:
  • Wando Belffi da Costa

    (Universidade Federal do Espírito Santo (UFES))

  • Marcelo Alvaro da Silva Macedo

    (Universidade Federal do Rio de Janeiro (PPGCC/UFRJ))

  • Karen Yukari Yokoyama

    (Universidade Federal do Espírito Santo (UFES))

  • José Elias Feres de Almeida

    (Universidade Federal do Espírito Santo (UFES))

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 BMeFBOVESPA 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.

Suggested Citation

  • Wando Belffi da Costa & Marcelo Alvaro da Silva Macedo & Karen Yukari Yokoyama & José Elias Feres de Almeida, 2017. "The Determinants of the Life Cycle Stages of Brazilian Public Companies: A Study Based on FinancialAccounting Variables," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 304-320, May.
    • Handle: RePEc:bbz:fcpbbr:v:14:y:2017:i:3:p304-320
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    References listed on IDEAS

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