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

• Autor(a) principal: Costa, Wando Belffi da
• Data de Publicação: 2017
• Outros Autores: Macedo, Marcelo Alvaro da Silva, Yokoyama, Karen Yukari, Almeida, José Elias Feres de
• Tipo de documento: Artigo
• Idioma: eng; por
• Título da fonte: BBR. Brazilian Business Review (English edition. Online)
• Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/41
• topic: Life cycle; accounting ratios; Finance; Brazilian public companies; Capital market; Ciclo de vida; indicadores contábeis; finanças; companhias abertas brasileiras; mercado de capitais

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 BM&FBOVESPA 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.