THE EFFECT OF FIRM LIFE CYCLE ON THE CAPITAL STRUCTURE OF BUSINESSES: AN INVESTIGATION ON BORSA ISTANBUL

Öz

Firm life cycle theory is a non-deterministic concept derived from the product life cycle of marketing and microeconomics and expressed by the understanding that the firm has certain life stages like a living organism. The concept of company life cycle, which emerged in the 1960s, has been a subject on which a significant number of studies have been carried out in recent years. The main purpose of this study is to examine the effect of firm life cycle on the capital structure of enterprises. In order to achieve this aim, the data of 294 companies in different sectors registered in Borsa Istanbul for the years 2013-2020 were used. In the study, the model developed by Dickinson (2011) was used as a firm life cycle indicator. Short-Term Liabilities (STL), Long-Term Liabilities (LTL) and Equity (E) are used as capital structure indicators. Correlation and regression analyzes were used in empirical analysis. As a result of the analysis, the relationship between life cycle stages in terms of ownership structure is positive with the entry stage of STL and negative with all other stages, entry and growth stage of LTL and positive, maturity, stagnation and decline stages and negative, E entry and growth period. negative with maturity, stagnation and decline phases, it is positive. In terms of firm characteristics, the profitability and size of the entry-stage firms are negative, whereas Cost of Good Sold (COGS) is positive and significant. In the growth phase, profitability and size are positive, COGS is negative and significant. In the maturity stage, profitability, size and sales are positive, while COGS is negative and significant. In the recession phase, profitability is positive, size, sales and COGS are negative. In the decline stage, profitability, size and sales are negative, while COGS is positive and significant.

Anahtar Kelimeler

• Firm Life Cycle
• Capital Structure
• Product Life Cycle

İşletmelerin Sermaye Yapısı Üzerinde Firma Yaşam Döngüsünün Etkisi: Borsa İstanbul Üzerine Bir İnceleme

Öz

Firma yaşam döngüsü teorisi pazarlama ve mikroekonominin ürün yaşam eğrisinden türetilen ve firmanın canlı bir organizma gibi belirli yaşam evrelerine sahip olduğu anlayışından hareket edilerek ifade edilen deterministik olmayan bir kavramdır. 1960’lı yıllarda ortaya çıkan firma yaşam döngüsü kavramı son yıllarda üzerinde önemli sayıda çalışmanın yapıldığı bir konu olmuştur. Bu çalışmanın temel amacı işletmelerin sermaye yapısı üzerinde firma yaşam döngüsünün etkisini incelemektedir. Bu amacı gerçekleştirmek üzere Borsa İstanbul’a kayıtlı farklı sektörlerde yer alan 294 firmanın 2013-2020 yıllarına ait verilerinden yararlanılmıştır. Çalışmada firma yaşam döngüsü göstergesi olarak Dickinson (2011) tarafından geliştirilmiş olan modelden yararlanılmıştır. Sermaye yapısı göstergeleri olarak da Kısa Vadeli Yabancı Kaynaklar (KVYK), Uzun Vadeli Yabancı Kaynaklar (UVYK) ve Öz Kaynaklar (ÖK) kullanılmıştır. Ampirik analizlerde korelasyon ve regresyon analizlerinden yararlanılmıştır. Yapılan analiz sonucunda, sahiplik yapısı açısından yaşam döngüsü aşamaları arasındaki ilişki, KVYK’ın giriş aşaması ile pozitif diğer tüm aşamalar ile negatif, UVYK’ın giriş ve büyüme aşaması ile pozitif, olgunluk, durgunluk ve düşüş aşamaları ile negatif, ÖK giriş ve büyüme dönemi ile negatif, olgunluk, durgunluk ve düşüş aşamaları ile pozitif olduğu sonucu elde edilmiştir. Firma karakteristiği bakımından, giriş aşamasındaki firmaların karlılık ve büyüklüğünün negatif, buna karşın Satılan Ticari Malın Maliyeti (STMM) pozitif ve anlamlıdır. Büyüme aşamasında karlılık ve büyüklüğün pozitif, STMM negatif ve anlamlıdır. Olgunluk aşamasında karlılık, büyüklük ve satışlar pozitif, STMM ise negatif ve anlamlıdır. Durgunluk aşamasında karlılık pozitif, büyüklük, satış ve STMM negatiftir. Düşüş aşamasında karlılık, büyüklük ve satışlar negatif, SMM ise pozitif ve anlamlıdır.

Anahtar Kelimeler

• Firma Yaşam Döngüsü
• Sermaye Yapısı
• Ürün Yaşam Döngüsü

Kaynakça

1. Adizes, I. (1979). Organizational passages—diagnosing and treating lifecycle problems of organizations. Organizational dynamics, 8(1), 3-25.
2. Aharony, J., Falk, H., & Yehuda, N. (2006). Corporate life cycle and the relative value-relevance of cash flow versus accrual financial information. School of Economics and management Bolzano.
3. Amin, M. S., Khan, H., Jaddon, I. A., & Tahir, M. (2020). Capital Structure Theories and Speed of Capital Adjustment towards Target Capital Structure along Life Cycle Stages of Asian Manufacturing Firms. Journal of Accounting and Finance in Emerging Economies, 6(1), 53-62.
4. Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and economics, 15(2-3), 203-227.
5. Black, E. L. (1998). Which is More Value-Relevant: Earnings or Cash Flows?. Available at SSRN 118089.
6. Black, E. L. (1998). Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. Journal of Financial Statement Analysis, 4, 40-57.
7. Castro, P. C., Fernández, M. T. T., & Tapia, B. A. (2014). The role of life cycle on the firm’s capital structure= El papel del ciclo de vida en la estructura de capital de la empresa. Pecunia: revista de la Facultad de Ciencias Económicas y Empresariales, (19), 131-155.
8. 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(2), 227-254.

9. Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The accounting review, 86(6), 1969-1994.
10. Güleç, Ö. F., & Karacaer, S. (2018). Corporate Life Cycle Theory and Accounting Performance: Borsa Istanbul Case. Muhasebe ve Finansman Dergisi.
11. Ivashkovskaya, I., Rukavishnikov, Y., & Guschin, A. (2013). Capital structure choice at different life-cycle stages in turbulent environment: The evidence from Russian emerging capital market. Economic and Social Development: Book of Proceedings, 311.
12. Jaafar, H., & Halim, H. A. (2016). Refining the firm life cycle classification method: A firm value perspective. Journal of Economics, Business and Management, 4(2), 112-119.
13. Liu, M. M. (2006). Accruals and managerial operating decisions over the firm life cycle (Doctoral dissertation, Massachusetts Institute of Technology).
14. Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American economic review, 48(3), 261-297.
15. Mutura, E. (2020). The relationship between business life cycle and capital structure of companies listed at the Nairobi securities exchange (Doctoral dissertation, UoN).
16. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of financial economics, 13(2), 187-221.
17. Nidar, S. R., & Utomo, R. A. P. (2017). Company life cycle and capital structure of manufacturing sector in the consumer goods industry. Jurnal Bisnis dan manajemen, 18(1), 46-54.
18. Pinková, P., & Kamínková, P. (2012). Corporate life cycle as determinant of capital structure in companies of Czech automotive industry. Acta universitatis agriculturae et silviculturae mendelianae brunensis, 60(2), 255-260.
19. Rehman, A. U., Man, W., & Haoyang, Y. (2017). Dynamics of financial leverage across firm life cycle in Chinese firms: An empirical investigation using dynamic panel data model. China Finance and Economic Review, 6(1), 27-55.
20. Valente, B. A. R. (2017). Capital Structure and Firm's Life Cycle: An Iberian Study.
21. Walid, Y. (2019). Life cycle theory of the capital structure: Evidence from tunisian SMEs. Asian Economic and Financial Review, 9(4), 432.
22. Wasilewski, M., & Żurakowska, J. (2020). The stages of firm life cycle and capital structure ratios for companies of industry. Zeszyty Naukowe SGGW, Polityki Europejskie, Finanse i Marketing, (23 (72)), 256-267.
23. Won, J., & Ryu, S. L. (2015). Operational Efficiency and Firm Life Cycle in the Korean Manufacturing Sector. In Current Research on Business VI. Proceedings of the 8th International Workshop, Jeju Island, Korea.
24. Yan, Z., & Zhao, Y. (2009). A new methodology of measuring firm life-cycle stages. International Journal of Economic Perspectives, Forthcoming.
25. Park, Y., & Chen, K. H. (2006). The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research (JABR), 22(3).
26. Zafar, S. (2016). Capital Structure Decision and Firm’s Life Cycle-A Study on Non-Financial Sector of Pakistan. NICE Research Journal, 1-18.
27. Zhang, X., & Xu, L. (2021). Firm life cycle and debt maturity structure: Evidence from China. Accounting & Finance, 61(1), 937-976.