FİRMA YAŞAM EVRELERİNİN FİNANSAL SIKINTI ÜZERİNDEKİ ROLÜ: BORSA İSTANBUL ÖRNEĞİ

Year 2024, Volume: 25 Issue: 2, 215 - 236, 30.06.2024

İbrahim Gültekin Güven Sayılgan

https://doi.org/10.53443/anadoluibfd.1367665

Abstract

Bu makalede, firmaların içinde bulundukları yaşam evresi şartlarına aykırı davranmalarının firmaların finansal sıkıntı yaşaması üzerinde etkisinin olup olmadığının tespit edilmesi amaçlanmaktadır. Her firma yaşam evresinin kendine özgü öncelikler gerektirdiği göz önüne alındığında, firmaların stratejik kararlarını belirlerken içinde bulundukları yaşam evrelerini dikkate almaları gerekmektedir. Çalışmada, firmaların finansal sıkıntı nedenleri kurumsal finans ilkeleri çerçevesinde ele alınmıştır. Bu bağlamda, firmaların yatırım, finansman ve kar dağıtım politikaları ile finansal sıkıntı arasındaki ilişki firma yaşam evreleri çerçevesinde incelenmiştir. Makalede, imalat sektöründe faaliyet gösteren 154 Borsa İstanbul (BIST) firmasının son yedi yıllık verileri kullanılarak panel veri analizi yapılmıştır. Bu kapsamda, yatırımların öz sermayeye oranı ile finansal sıkıntı arasında büyüme ve düşüş evresindeki firmalar için pozitif ilişki bulunmuştur. Ayrıca, finansal kaldıracın tüm yaşam evreleri için finansal kırılganlığı artırdığı, ancak bu etkinin büyüme evresindeki firmalarda ve düşüş evresindeki firmalarda daha büyük olduğu tespit edilmiştir. Söz konusu bulgular, firma yöneticilerince doğru stratejik kararların oluşturulması açısından önemlidir.

Keywords

Firma Yaşam Evresi, Finansal Sıkıntı, Gelişen Piyasalar Z-Skoru

INVESTIGATING THE ROLE OF FIRM LIFE CYCLE ON FINANCIAL DISTRESS: EVIDENCE FROM BORSA ISTANBUL

Abstract

This paper aims to examine whether acting non-compatible with life cycle has impact on firm’s financial distress. Considering every life stage requires unique priorities, firms should consider their life phases when determining their strategical decisions. We handle the causes of financial distress from a broad and strategical perspective on corporate finance ground. In this regard, we seek the relationships of investment, finance, and dividend policies with financial distress, considering firm life cycles. We applied panel data analysis examining 154 Borsa Istanbul (BIST) firms in manufacturing sector using their last seven-year data. We find that the ratio of investment to equity is positively correlated with financial distress for growth and decline firms at different levels. Additionally, we find that leverage increases financial vulnerability in all life cycles, however, the impact of leverage is larger for growth firms and decline firms. These findings are significant to navigate managers in the right direction.

Keywords

Firm Life Cycle, Financial Distress, Emerging Market Z-Score

References

• Adizes, I. (1979). Organizational passages – Diagnosing and treating lifecycle problems of organizations. American Management Associations, 8(1), 3-25. doi: 10.1016/0090-2616(79)90001-9.
• Alfaro, L., Asis, G., Chari, A. & Panizza, U., (2019). Corporate debt, firm size and financial fragility in emerging markets. Journal of International Economics, 118, 1-19. doi: 10.1016/j.jinteco.2019.01.002.
• Altman, E.I. (2005). An emerging market credit scoring system for corporate bonds. Emerging Market Review, 6, 311-323. doi: 10.1016/j.ememar.2005.09.007.
• Altman, E.I., Iwanicz-Drozdowska, M., Laitinen, E.K., & Suvas, A. (2016). Financial and nonfinancial variables as long-horizon predictors of bankruptcy. Journal of Credit Risk, 12(4), 49-78. doi.org/10.21314/JCR.2016.216.
• Bansal, S., & Thenmozhi, M. (2020). Does concentrated founder ownership affect board independence? Role of corporate life cycle and ownership identity. Pacific-Basin Finance Journal, 62, 2-18. doi: 10.1016/j.pacfin.2020.101377.
• Bhattacharya, D., Chang, C-W, & Li, W-H. (2020). Stages of firm life cycle, transition, and dividend policy. Finance Research Letters, 33, 1-12. doi: 10.1016/j.frl.2019.06.024.
• Blomkvist, M., Löflund, A., & Vyas, H. (2021). Credit ratings and firm life-cycle. Finance Research Letters, 39, 1-5. doi: 10.1016/j.frl.2020.101598.
• Campbell, J.Y., Hilscher, J., & Szilagyi, J. (2005). In search of distress risk (Harvard University Discussion Paper No. 2081). doi: 10.2139/ssrn.770805.
• Cao, Y. (2012). MCELCCh-FDP: Financial distress prediction with classifier ensembles based on firm life cycle and choquet integral. Expert Systems with Applications, 39, 7041-7049. doi: 10.1016/j.eswa.2012.01.043.
• Damodaran, A. (2014). Applied corporate finance (3rd Edition). New Jersey: John Wiley & Sons Inc.
• DeAngelo, H., DeAngelo, L, & Stulz, R.M. (2006). Dividend policy and the earned/contributed capital mix: a test of the life-cycle theory. Journal of Financial Economics, 81, 227-254. doi: 10.1016/j.jfineco.2005.07.005.
• Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The Accounting Review, 86(6), 1969-1994. doi: 10.2308/accr-10130.
• Dickinson, V., Kassa, H., & Schaberl., P.D. (2018). What information matters to investors at different stages of a firm’s life cycle? Advances in Accounting, 42, 22-33. doi: 10.1016/j.adiac.2018.07.002.
• Faff, R., Kwok, W.C., Podolski, E.J., & Wong, G. (2016). Do corporate policies follow a life-lycle? Journal of Banking & Finance, 69, 95-107. doi: 10.1016/j.jbankfin.2016.04.009.
• Gardner, J.W. (1965). How to prevent organizational dry rot. Harper’s Magazine. Retrieved from https://harpers.org/archive/1965/10/how-to-prevent-organizational-dry-rot/
• Güleç, Ö.F., & Karacaer, S. (2018). Corporate life cycle theory and accounting performance: Borsa Istanbul case. Muhasebe ve Finansman Dergisi, (78), 265-279.
• Güleç, Ö.F., & Arda, I. (2019). Investigating of cash flow profiles: Evidence from Turkey. Muhasebe ve Finansman Dergisi, Özel Sayı, 555-568. doi: 10.25095/mufad.607209.
• Haire, M. (1959). Modern organization theory. Washignton DC: John Wiley.
• Hasan, M.M., Hossain, M., & Cheung, A. (2015). Corporate life cycle and cost of equity capital. Journal of Contemporary Accounting&Economics, 11, 46-60. doi: 10.1016/j.jcae.2014.12.002.
• Hasan, M. M., & Cheung, A. (2017). Organization capital and firm life cycle. Journal of Corporate Finance, 48, 556-578. doi: 10.1016/j.jcorpfin.2017.12.003.
• Hasan, M. M., & Habib, A. (2017). Firm life cycle and idiosyncratic volatility. International Review of Financial Analysis, 50, 164-175. doi: 10.1016/j.irfa.2017.01.003.
• Koller, T., Goedhart, M., & Wessels, D. (2010). Valuation measuring and managing the value of companies (5th Edition). New Jersey: John Wiley & Sons Inc.
• Lizal, L. (2002). Determinants of financial distress: What drives bankruptcy in a transition economy? The Czech Republic case (William Davidson Working Paper No. 451). doi: 10.2139/ssrn.307224.
• Sayılgan, G. (2017). Soru ve yanıtlarıyla işletme finansmanı. Ankara: Siyasal Kitapevi.
• Seifert, B., & Gönenç, H. (2012). Issuing and repurchasing: The influence of mispricing, corporate life cycle and financing waves. Journal of Multinational Financial Management, 22, 66-81. doi: 10.1016/j.mulfin.2012.02.001.
• Shahzad, F., Lu, J., & Fareed, Z. (2019). Does firm life cycle impact corporate risk taking and performance. Journal of Multinational Financial Management, 51, 23-44. doi: 10.1016/j.mulfin.2019.05.001.
• Shahzad, F., Fareed, Z., Wang, Z., & Shah, S.G.M. (2020). Do idiosyncratic risk, market risk, and total risk matter during different firm life cycle stages?. Physica A: Statistical Mechanics and Its Applications, 537, 1-18. doi: 10.1016/j.physa.2019.122550.
• StreetFins (2022, 8 Eylül). Corporate life cycles. Retrieved from https://streetfins.com/corporate-life-cycles/
• Sudarsanam, S., & Lai, J. (2001). Corporate financial distress and turnaround strategies: an emprical analysis. British Journal of Management, 12, 183-199. doi: 10.1111/1467-8551.00193.
• Türkiye Odalar Borsalar Birliği (8 Eylül 2022). Kurulan/kapanan şirket istatistikleri. Retrieved from https://www.tobb.org.tr/BilgiErisimMudurlugu/Sayfalar/KurulanKapananSirketistatistikleri.php
• Turetsky, H.F., & McEwen, R.A. (2001). An emprical investigation of firm longevity: A model of the ex ante predictors of financial distress. Review of Quantitative Finance and Accounting, 16, 323-343.
• Whitaker, R.B. (1999). The early stages of financial distress. Journal of Economics and Finance, 23, 123-132.
• Xu, M., & Zhang, C. (2009). Bankruptcy prediction: the case of Japanese listed companies. Review of Accounting Studies, 14, 534-558. doi: 10.1007/s11142-008-9080-5.