Firm life cycle and advisory directors
MetadataShow full item record
This article investigates whether the presence of advisory directors and monitoring directors varies across firm life cycle stages. We follow a parsimonious life cycle proxy based on the predicted behaviour of operating, investing and financing cash flows across the different life cycle stages that result from firm performance and the allocation of resources. Using an Australian sample, this study shows that compared to mature-stage firms, firms in the introduction, shake-out and decline stages have more advisory directors. With respect to the demand for monitoring directors, we find that compared to mature-stage firms, firms in the introduction, shake-out and decline stages have fewer monitoring directors on the board. We contribute to the literature on boards of directors by documenting that firms choose an optimal board structure based on their economic characteristics.
Habib, A. and Bhuiyan, M. and Hasan, M. 2017. 43 (4): pp. 575-592. Firm life cycle and advisory directors. Australian Journal of Management. Copyright © 2017 The Author(s). Reprinted by permission of SAGE Publications
Showing items related by title, author, creator and subject.
Hasan, Mostafa; Habib, A. (2016)This paper investigates the association between idiosyncratic volatility and firm life cycle stages. Since firm performance and availability of information vary across life cycle stages, and such variation affects uncertainty ...
Hasan, Mostafa; Cheung, A. (2018)We hypothesize, and examine empirically, two types of association between organization capital and firm life cycle. Are firms with high organization capital more likely to be in a particular stage of their life cycle than ...
Hasan, Mostafa; Al-Hadi, A.; Taylor, G.; Richardson, G. (2016)This study examines whether a firm’s life cycle explains its propensity to engage in corporate tax avoidance. Based on the Dickinson (2011) model of firm life cycle stages and a large dataset of US publicly listed firms ...