A New Methodology of Measuring Firm Life-Cycle Stages
International Journal of Economic Perspectives, 2010, Volume 4, Issue 4, 579-587
9 Pages Posted: 12 May 2015
Date Written: 2010
Firm life-cycle concept has been used in a variety of disciplines, including economics, finance and accounting, and also in the real-world investment. This paper develops a new methodology of measuring firm life-cycle stages. By comparing a firm's status at each point of its development with its own historical overall status, this methodology can be applied in studies of large-sample time-series properties within each stage. We use real-world firm data to illustrate and validate our methodology.
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