•  
  •  
 
Business Review

Abstract

The goal of this study was to examine the association between Business Life Cycle phases and organizational capital using PSX index companies. Mainly, the study investigates the relationship of organizational capital phases during different phases of the life cycle and comparison with high and low organizational capital. To fulfill this objective data has been collected of 56 companies of PSX index companies with yearly observations ranging from 2011-2020. For estimation, a multinomial logistic model was used due to categories of the dependent variable. The results indicate that organizational capital is positively significant at the maturity phase but negatively significant at the introduction, growth shake-out, and decline phase of the Business Life Cycle. Business Life Cycle and size, ROE, Capex, and leverage significantly but negatively whereas age and ATO significantly affect Business Life Cycle phases. The results vary with different phases of the Business Life Cycle. For future study, the study recommended that the scholar increase the number of observations for more accurate results or used different proxy for measuring organizational capital.

Keywords

Organizational Capital, Firm’s Life Cycle, PSX companies, multinomial logistic regression.

DOI

https://doi.org/10.54784/1990-6587.1428

Journal of Economic Literature Subject Codes

B23, C14, C25, D21

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published Online

February 07, 2022

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.