Abstract
The main purpose of this study is to empirically examine whether the implications of the life cycle model hold on the growth path of a sample of Swedish micro firms. The study is based on a sample containing 22001 Swedish micro firms across six industries for the year 2007. Several methods are used to analyse the impact of the life stage and two control variables, size and industry, to analyse the impact on firm growth. The empirical results of the study confirm a clear pattern of the growth life-cycle process among Swedish micro firms. Young micro firms, generally, grow on average more than their older counterparts and as they age and develop, their growth rate decreases. Additionally, firm growth among firms of different sizes and in various industries still follows the general pattern of the total sample. Thus, it appears from the results that the growth rate of Swedish micro firms included in the sample follows a systematic and predictable pattern associated mainly with the life stage.
Highlights
The dynamic processes of the life cycle of the firm generally play a fundamental role in the development of a given economy
Since the growth of micro firms is an important pre-condition for job creation, wealth creation, and dynamic economic and sector development, the question of the relationship between the life cycle stage and growth has been a prioritized issue for both researchers and policy makers
Consistent with the hypotheses, the empirical results show a clear pattern of the growth life cycle process among micro firms included in this study
Summary
The dynamic processes of the life cycle of the firm generally play a fundamental role in the development of a given economy. The model has been used to analyse the development of the firm capital structure (Berger & Udell, 1998; Cabral & Mata, 2003; Fama & French, 2000; Gregory, Rutherford, Oswald, & Gardiner, 2005). Various stakeholders, such as investors, managers, lenders, and creditors, can employ the model to analyse and assess the financial position, performance, and long-range planning of a firm (Scott & Bruce, 1987)
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call