Firm life cycle, corporate risk-taking and investor sentiment
This study investigates the corporate risk-taking and the performance consequences at different stages of the firm life cycle. We find that risk-taking is higher in the introduction and decline stages of the life cycle, but lower in the growth and mature stages. We also find that risk-taking during...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
Routledge
2015
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/44409 |
| _version_ | 1848756992426901504 |
|---|---|
| author | Habib, A. Hasan, Mostafa |
| author_facet | Habib, A. Hasan, Mostafa |
| author_sort | Habib, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study investigates the corporate risk-taking and the performance consequences at different stages of the firm life cycle. We find that risk-taking is higher in the introduction and decline stages of the life cycle, but lower in the growth and mature stages. We also find that risk-taking during introduction and decline stage (growth and maturity stage) affects future performance adversely (positively). We also document that managerial risk-taking propensities increase during periods of high investor sentiment and firms in different life cycle stages respond to sentiment differently. Collectively, these results suggest that the firm life cycle has explanatory power for corporate risk-taking behaviour. |
| first_indexed | 2025-11-14T09:21:00Z |
| format | Journal Article |
| id | curtin-20.500.11937-44409 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:21:00Z |
| publishDate | 2015 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-444092017-09-13T15:48:12Z Firm life cycle, corporate risk-taking and investor sentiment Habib, A. Hasan, Mostafa Investor sentiment Firm life cycle Corporate risk-taking Firm performance This study investigates the corporate risk-taking and the performance consequences at different stages of the firm life cycle. We find that risk-taking is higher in the introduction and decline stages of the life cycle, but lower in the growth and mature stages. We also find that risk-taking during introduction and decline stage (growth and maturity stage) affects future performance adversely (positively). We also document that managerial risk-taking propensities increase during periods of high investor sentiment and firms in different life cycle stages respond to sentiment differently. Collectively, these results suggest that the firm life cycle has explanatory power for corporate risk-taking behaviour. 2015 Journal Article http://hdl.handle.net/20.500.11937/44409 10.1111/acfi.12141 Routledge restricted |
| spellingShingle | Investor sentiment Firm life cycle Corporate risk-taking Firm performance Habib, A. Hasan, Mostafa Firm life cycle, corporate risk-taking and investor sentiment |
| title | Firm life cycle, corporate risk-taking and investor sentiment |
| title_full | Firm life cycle, corporate risk-taking and investor sentiment |
| title_fullStr | Firm life cycle, corporate risk-taking and investor sentiment |
| title_full_unstemmed | Firm life cycle, corporate risk-taking and investor sentiment |
| title_short | Firm life cycle, corporate risk-taking and investor sentiment |
| title_sort | firm life cycle, corporate risk-taking and investor sentiment |
| topic | Investor sentiment Firm life cycle Corporate risk-taking Firm performance |
| url | http://hdl.handle.net/20.500.11937/44409 |