IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v8y2012i2p226-238.html
   My bibliography  Save this article

Agency costs theory and the financing life cycle empirical evidence from Swedish firm-level data

Author

Listed:
  • Darush Yazdanfar

Abstract

The purpose of this paper is to empirically examine the financing life cycle pattern of micro-firms in Sweden from the agency costs theory perspective. The study shows that the financing structures of firms change over the firms' life cycles. Firms generally rely on internal financial sources such as equity capital and retained profits, particularly at the start-up stage. They also use short-term debt as the second most important financial source at this stage. As firms age and develop, the use of short-term debt decreases and the use of both equity capital and long-term debt simultaneously increase. The financing patterns of firms in different industries over their life cycles follow the general pattern of the total sample. The results from the statistical tests support the applicability of the financial life cycle model and the agency costs theory to explain it.

Suggested Citation

  • Darush Yazdanfar, 2012. "Agency costs theory and the financing life cycle empirical evidence from Swedish firm-level data," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 8(2), pages 226-238.
    • Handle: RePEc:ids:ijbglo:v:8:y:2012:i:2:p:226-238
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=45397
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Doris Madhi, 2017. "The Macroeconomic Factors Impact on Liquidity Risk: The Albanian Banking System Case," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 3, ejes_v3_i.
    2. Yue Chen & Wentao Zhang & Xiangbin Yan & Jiahua Jin, 2020. "The life-cycle influence mechanism of the determinants of financing performance: an empirical study of a Chinese crowdfunding platform," Review of Managerial Science, Springer, vol. 14(1), pages 287-309, February.
    3. Youssef Walid, 2019. "Life Cycle Theory of the Capital Structure: Evidence from Tunisian SMEs," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(4), pages 432-449, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbglo:v:8:y:2012:i:2:p:226-238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.