Firm life cycle and earnings management: The moderating role of state ownership

References

• Abad, D., Cutillas-Gomariz, M. F., Sánchez-Ballesta, J. P., & Yagüe, J. (2018). Real earnings management and information asymmetry in the equity market. European Accounting Review, 27(2), 209–28. https://doi.org/10.1080/09638180.2016.1261720
   Web of Science ®Google Scholar
• Abdul Rahman, R., Haniffa, R., Haniffa, R., & Haniffa, R. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783–804. https://doi.org/10.1108/02686900610680549
   Google Scholar
• Adizes, I. (1979). Organizational passages-diagnosing and treating lifecycle prob- lems of organizations. Organizational Dynamics, 8(1), 3–25. https://doi.org/10.1016/0090-2616(79)90001-9
   Web of Science ®Google Scholar
• Ahmed, B., Akbar, M., Sabahat, T., Ali, S., Hussain, A., Akbar, A., & Hongming, X. (2020). Does firm life cycle impact corporate investment efficiency? Sustainability, 13(1), 197–210. https://doi.org/10.3390/su13010197
   Web of Science ®Google Scholar
• Akbar, A., Akbar, M., Tang, W., & Qureshi, M. (2019). Is bankruptcy risk tied to corporate life-cycle? Evidence from Pakistan. Sustainability, 11(3), 678–700. https://doi.org/10.3390/su11030678
   Web of Science ®Google Scholar
• Akbar, M., Akbar, A., Maresova, P., Yang, M., & Arshad, H. M. (2020). Unraveling the bankruptcy risk‒return paradox across the corporate life cycle. Sustainability, 12(9), 147–159. https://doi.org/10.3390/su12093547
   Web of Science ®Google Scholar
• Akbar, M., Akbar, A., Qureshi, M., & Poulova, P. (2021). Sentiments–risk relationship across the corporate life cycle: Evidence from an emerging market. Economies, 9(3), 111–128. https://doi.org/10.3390/economies9030111
   Web of Science ®Google Scholar
• Alzoubi, E. S. S. (2018). Audit quality, debt financing, and earnings management: Evidence from Jordan. Journal of International Accounting, Auditing and Taxation, 30, 69–84. https://doi.org/10.1016/j.intaccaudtax.2017.12.001
   Google Scholar
• Amit, R., Brander, J., & Zott, C. (1998). Why do venture capital firms exist? theory and Canadian evidence. Journal of Business Venturing, 13(6), 441–466. https://doi.org/10.1016/S0883-9026(97)00061-X
   Web of Science ®Google Scholar
• Anker, R. (2016). The moderating effect of organizational life cycle on the relationship between corporate social performance and corporate financial performance. ( Master thesis) University of Amsterdam.
   Google Scholar
• Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and Economics, 15(2–3), 203–227. https://doi.org/10.1016/0165-4101(92)90018-W
   Web of Science ®Google Scholar
• Bain, J. (1956). Barriers to New Competition. Harvard University Press.
   Google Scholar
• Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1007/BF02512353
   PubMed Web of Science ®Google Scholar
• Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings1. Journal of Accounting and Economics, 24(1), 3–37. https://doi.org/10.1016/S0165-4101(97)00014-1
   Web of Science ®Google Scholar
• Bell, A., Fairbrother, M., & Jones, K. (2019). Fixed and random effects models: Making an informed choice. Quality & Quantity, 53(2), 1051–1074. https://doi.org/10.1007/s11135-018-0802-x
   Google Scholar
• Beneish, M. D. (2001). Earnings management: A perspective. Managerial Finance, 27(12), 3–17. https://doi.org/10.1108/03074350110767411
   Google Scholar
• Black, E. L. (1998). Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. Journal of Financial Statement Analysis, 4, 40–57.
   Google Scholar
• Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24(1), 99–126. https://doi.org/10.1016/S0165-4101(97)00017-7
   Web of Science ®Google Scholar
• Can, G., Ntim, C. G., & Ntim, C. G. (2020). Do life-cycles affect financial reporting quality? Evidence from emerging market. Cogent Business & Management, 7(1), 185–209. https://doi.org/10.1080/23311975.2020.1854147
   Web of Science ®Google Scholar
• Castanias, R. P., & Helfat, C. E. (2001). The managerial rents model: Theory and empirical analysis. Journal of Management, 27(6), 661–678. https://doi.org/10.1177/014920630102700604
   Web of Science ®Google Scholar
• Chen, T. (2016). Internal control, life cycle and earnings quality —an empirical analysis from Chinese market. Open Journal of Business and Management, 4(2), 301–311. https://doi.org/10.4236/ojbm.2016.42032
   Google Scholar
• Christensen, F. M., & Olsen, S. (2004). The potential role of life cycle assessment in regulation of chemicals in the European Union. The International Journal of Life Cycle Assessment, 9(5), 327–332. https://doi.org/10.1007/BF02979422
   Web of Science ®Google Scholar
• Deangelo, H., Deangelo, L., & Stulz, R. (2006). Dividend policy and the earned/contributed capital mix: A test of the life-cycle theory☆. Journal of Financial Economics, 81(2), 227–254. https://doi.org/10.1016/j.jfineco.2005.07.005
   Web of Science ®Google Scholar
• Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The Accounting Review, 86(6), 1969–1994. https://doi.org/10.2308/accr-10130
   Web of Science ®Google Scholar
• Dickinson, V., Kassa, H., & Schaberl, P. D. (2018). What information matters to investors at different stages of a firm’s life cycle? Advances in Accounting, 42, 22–33. https://doi.org/10.1016/j.adiac.2018.07.002
   Web of Science ®Google Scholar
• Doukas, J. A., & Kan, O. B. (2004). Excess cash flows and diversification discount. Financial Management, 33(2), 71–88. http://www.jstor.org/stable/3666159
   Web of Science ®Google Scholar
• Durana, P., Michalkova, L., Privara, A., Marousek, J., & Tumpach, M. (2021). Does the life cycle affect earnings management and bankruptcy? Oeconomia Copernicana, 12(2), 425–461. https://doi.org/10.24136/oc.2021.015
   Web of Science ®Google Scholar
• Faccio, M., Masulis, R. W., & McConnell, J. J. (2006). Political connections and corporate bailouts. The Journal of Finance, 61(6), 2597–2635. https://doi.org/10.1111/j.1540-6261.2006.01000.x
   Web of Science ®Google Scholar
• Faccio, M. (2010). Differences between politically connected and nonconnected firms: A cross‐country analysis. Financial Management, 39(3), 905–928. https://doi.org/10.1111/j.1755-053X.2010.01099.x
   Web of Science ®Google Scholar
• Faff, R., Kwok, W. C., Podolski, E. J., & Wong, G. (2016). Do corporate policies follow a life-cycle? Journal of Banking & Finance, 69, 95–107. https://doi.org/10.1016/j.jbankfin.2016.04.009
   Web of Science ®Google Scholar
• Gort, M., & Klepper, S. (1982). Time paths in the diffusion of product innovations. The Economic Journal, 92(367), 630–653. https://doi.org/10.2307/2232554
   Web of Science ®Google Scholar
• Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1–3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002
   Web of Science ®Google Scholar
• Granlund, M., & Taipaleenmäki, J. (2005). Management control and controllership in new economy firms - a life cycle perspective. Management Accounting Research, 16(1), 21–57. https://doi.org/10.1016/j.mar.2004.09.003
   Google Scholar
• Habib, A., & Hasan, M. M. (2017). Firm life cycle, corporate risk-taking and investor sentiment. Accounting & Finance, 57(2), 465–497. https://doi.org/10.1111/acfi.12141
   Web of Science ®Google Scholar
• Habib, A., & Hasan, M. M. (2019). Corporate life cycle research in accounting, finance and corporate governance: A survey, and directions for future research. International Review of Financial Analysis, 61, 188–201. https://doi.org/10.1016/j.irfa.2018.12.004
   Web of Science ®Google Scholar
• Habib, A., Bhuiyan, M. B. U., & Hasan, M. M. (2019). IFRS adoption, financial reporting quality and cost of capital: A life cycle perspective. Pacific Accounting Review, 31(3), 497–522. https://doi.org/10.1108/PAR-08-2016-0073
   Web of Science ®Google Scholar
• Hamilton, R. T., & Chow, Y. K. (1993). Why managers divest - evidence from New Zealand’s largest companies. Strategic Management Journal, 14(6), 479–484. https://doi.org/10.1002/smj.4250140606
   Web of Science ®Google Scholar
• Hasan, M. M., Al-Hadi, A., Taylor, G., & Richardson, G. (2017). Does a firm’s life cycle explain its propensity to engage in corporate tax avoidance? European Accounting Review, 26(3), 469–501. https://doi.org/10.1080/09638180.2016.1194220
   Web of Science ®Google Scholar
• Hasan, M. M., & Habib, A. (2017a). Corporate life cycle, organizational financial resources and corporate social responsibility. Journal of Contemporary Accounting & Economics, 13(1), 20–36. https://doi.org/10.1016/j.jcae.2017.01.002
   Web of Science ®Google Scholar
• Hasan, M. M., & Habib, A. (2017b). Firm life cycle and idiosyncratic volatility. International Review of Financial Analysis, 50, 164–175. https://doi.org/10.1016/j.irfa.2017.01.003
   Web of Science ®Google Scholar
• Hillman, A. J., Zardkoohi, A., & Bierman, L. (1999). Corporate political strategies and firm performance: Indications of firm‐specific benefits from personal service in the US government. Strategic Management Journal, 20(1), 67–81. https://doi.org/10.1002/(SICI)1097-0266(199901)20:1<67::AID-SMJ22>3.0.CO;2-T
   Web of Science ®Google Scholar
• Hitt, M. A., Hoskisson, R. E., Johnson, R. A., & Moesel, D. D. (1996). The market for corporate control and firm innovation. Academy of Management Journal, 39(5), 1084–1119. https://doi.org/10.5465/256993
   Web of Science ®Google Scholar
• Hoskisson, R. E., & Hitt, M. A. (1994). Downscoping: How to tame the diversified firm. Oxford University Press.
   Google Scholar
• Hribar, P., & Yehuda, N. (2015). The mispricing of cash flows and accruals at different life‐cycle stages. Contemporary Accounting Research, 32(3), 1053–1072. https://doi.org/10.1111/1911–3846.12117
   Web of Science ®Google Scholar
• Hsu, F. J. (2018). Does corporate social responsibility extend firm life-cycles? Management Decision, 56(11), 2408–2436. https://doi.org/10.1108/md-09-2017-0865
   Web of Science ®Google Scholar
• Hussain, A., Akbar, M., Kaleem Khan, M., Akbar, A., Panait, M., & Catalin Voica, M. (2020). When does earnings management matter? Evidence across the corporate life cycle for non-financial Chinese listed companies. Journal of Risk and Financial Management, 13(12), 313–332. https://doi.org/10.3390/jrfm13120313
   Web of Science ®Google Scholar
• Irawana, F., & Afifb, A. R. (2020). Does firms’ life cycle influence tax avoidance? Evidence from Indonesia. International Journal of Innovation, Creativity and Change, 14(1), 1211–1229.
   Google Scholar
• Jacoby, G., Li, J., & Liu, M. (2019). Financial distress, political affiliation and earnings management: The case of politically affiliated private firms. The European Journal of Finance, 25(6), 508–523. https://doi.org/10.1080/1351847X.2016.1233126
   Web of Science ®Google Scholar
• Jawahar, I. M., & McLaughlin, G. L. (2001). Toward a descriptive stakeholder theory: An organizational life cycle approach. Academy of Management Review, 26(3), 397–414. https://doi.org/10.5465/amr.2001.4845803
   Web of Science ®Google Scholar
• Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323–329. http://www.jstor.org/stable/1818789
   Web of Science ®Google Scholar
• Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193–228. https://doi.org/10.2307/2491047
   Web of Science ®Google Scholar
• Jovanovic, B. (1982). Selection and the Evolution of Industry. Econometrica, 50(3), 649–670. https://doi.org/10.2307/1912606
   Web of Science ®Google Scholar
• Kabir, R., & Thai, H. M. (2017). Does corporate governance shape the relationship between corporate social responsibility and financial performance? Pacific Accounting Review, 29(2), 227–258. https://doi.org/10.1108/PAR-10-2016-0091
   Web of Science ®Google Scholar
• Kale, D., & Almeida, J. (2019, 13-16 March, 2019). The quality of accruals across life cycle stages‖. Paper presented at the Southwestern Finance Association 2019 Annual Meeting (SWFA), Houston TX.
   Google Scholar
• Kimberly, J. R. (1980). Data aggregation in organizational research: The temporal dimension. Organization Studies, 1(4), 367–377. https://doi.org/10.1177/017084068000100404
   Google Scholar
• Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002
   Web of Science ®Google Scholar
• Kovacova, M., Kliestik, T., Kubala, P., Valaskova, K., Radišić, M., & Borocki, J. (2018). Bankruptcy models: Verifying their validity as a predictor of corporate failure. Polish Journal of Management Studies, 18(1), 167–179. https://doi.org/10.17512/pjms.2018.18.1.13
   Web of Science ®Google Scholar
• Krishnan, G. V., Myllymäki, E. R., & Nagar, N. (2020). Does financial reporting quality vary across firm life cycle? Journal of Business Finance & Accounting, 48(5–6), 954–987. https://doi.org/10.1111/jbfa.12508
   Web of Science ®Google Scholar
• Leuz, C. (2010). Different approaches to corporate reporting regulation: How jurisdictions differ and why. Accounting and Business Research, 40(3), 229–256. https://doi.org/10.1080/00014788.2010.9663398
   Web of Science ®Google Scholar
• Li, Y., Li, X., Xiang, E., & Geri Djajadikerta, H. (2020). Financial distress, internal control, and earnings management: Evidence from China. Journal of Contemporary Accounting & Economics, 16(3), 121–139. https://doi.org/10.1016/j.jcae.2020.100210
   Web of Science ®Google Scholar
• Liu, M. M. (2006). Accruals and managerial operating decisions over the firm life cycle. ( Doctoral dissertation), Massachusetts Institute of Technology.
   Google Scholar
• Lux, S., Crook, T. R., & Woehr, D. J. (2011). Mixing business with politics: A meta-analysis of the antecedents and outcomes of corporate political activity. Journal of Management, 37(1), 223–247. https://doi.org/10.1177/0149206310392233
   Web of Science ®Google Scholar
• Miller, D., & Friesen, P. H. (1980). Momentum and revolution in organizational adaptation. Academy of Management Journal, 23(4), 591–614. https://doi.org/10.5465/255551
   Web of Science ®Google Scholar
• Miller, D., & Friesen, P. H. (1984). A longitudinal study of the corporate life cycle. Management Science, 30(10), 1161–1183. https://doi.org/10.1287/mnsc.30.10.1161
   Web of Science ®Google Scholar
• Miller, D., & Friesen, P. H. (2016). Successful and unsuccessful phases of the corporate life cycle. Organization Studies, 4(4), 339–356. https://doi.org/10.1177/017084068300400403
   Web of Science ®Google Scholar
• Moores, K., & Yuen, S. (2001). Management accounting systems and organizational configuration: A life-cycle perspective. Accounting, Organizations and Society, 26(4), 351–389. https://doi.org/10.1016/S0361-3682(00)00040-4
   Web of Science ®Google Scholar
• Mueller, D. C. (1972). A life cycle theory of the firm. The Journal of Industrial Economics, 20(3), 199–219. https://doi.org/10.2307/2098055
   Web of Science ®Google Scholar
• Najid, N. A., & Rahman, R. A. (2011). Government ownership and performance of Malaysian government-linked companies. International Research Journal of Finance and Economics, 61(1), 145–167.
   Google Scholar
• O’Connor, T., & Byrne, J. (2015). Governance and the corporate life-cycle. International Journal of Managerial Finance, 11(1), 23–43. https://doi.org/10.1108/ijmf-03-2013-0033
   Web of Science ®Google Scholar
• Park, K. (2017). Pay disparities within top management teams and earning management. Journal of Accounting and Public Policy, 36(1), 59–81. https://doi.org/10.1016/j.jaccpubpol.2016.11.002
   Web of Science ®Google Scholar
• Park, B.-J., & Lee, K.-H. (2020). The sensitivity of corporate social performance to corporate financial performance: A “time-based” agency theory perspective. Australian Journal of Management, 46(2), 224–247. https://doi.org/10.1177/0312896220917192
   Web of Science ®Google Scholar
• Pfeffer, J., & Salancik, G. (1978). The external control of organizations: a resource dependence perspective. Harper.
   Google Scholar
• Pham, H. S. T., & Tran, H. T. (2020). CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity. Journal of Business Research, 120, 127–136. https://doi.org/10.1016/j.jbusres.2020.08.002
   Web of Science ®Google Scholar
• Ramaswamy, V., Ueng, J. C., & Carl, L. (2007). Corporate governance characteristics of growth companies: An empirical study. Academy of Accounting and Financial Studies, 12(1), 21–33.
   Google Scholar
• Roma, C. M. D. S., Louzada, L. C., Roma, P. M. D. S., Goto, H., & Souma, W. (2020). Earnings management, policy uncertainty and firm life cycle stages: Evidence from publicly traded companies in the USA and Brazil. Journal of Financial Economic Policy, 13(3), 371–390. https://doi.org/10.1108/jfep-02-2020-0031
   Web of Science ®Google Scholar
• Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002
   Web of Science ®Google Scholar
• Scherer, F. M. (1970). Industrial market structure and economic performance. Rand McNally.
   Google Scholar
• Selling, T. I., & Stickney, C. P. (1989). The effects of business environment and strategy on a firm’s rate of return on assets. Financial Analysts Journal, 45(1), 43–52. https://doi.org/10.2469/faj.v45.n1.43
   Google Scholar
• Spence, A. M. (1977). Entry, capacity, investment and oligopolistic pricing. The Bell Journal of Economics, 8(2), 534–544. https://doi.org/10.2307/3003302
   Google Scholar
• Spence, A. M. (1979). Investment strategy and growth in a new market. J. Reprints Antitrust L. & Econ, 10, 345–359.
   Google Scholar
• Trihermanto, F., & Nainggolan, Y. A. (2018). Corporate life cycle, CSR, and dividend policy: Empirical evidence of Indonesian listed firms. Social Responsibility Journal, 16(2), 159–178. https://doi.org/10.1108/srj-09-2017-0186
   Web of Science ®Google Scholar
• Uddin, M. H. (2016). Effect of government share ownership on corporate risk taking: Case of the United Arab Emirates. Research in International Business and Finance, 36, 322–339. https://doi.org/10.1016/j.ribaf.2015.09.033
   Web of Science ®Google Scholar
• Verreynne, M.-L., & Meyer, D. (2010). Small business strategy and the industry life cycle. Small Business Economics, 35(4), 399–416. https://doi.org/10.1007/s11187-008-9165-3
   Web of Science ®Google Scholar
• Vorst, P., & Yohn, T. L. (2018). Life cycle models and forecasting growth and profitability. The Accounting Review, 93(6), 357–381. https://doi.org/10.2308/accr-52091
   Web of Science ®Google Scholar
• Wang, Z., Akbar, M., & Akbar, A. (2020). The interplay between working capital management and a firm’s financial performance across the corporate life cycle. Sustainability, 12(4), 166–182. https://doi.org/10.3390/su12041661
   Web of Science ®Google Scholar
• Yonpae, P., & Chen, K. H. (2006). The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research (JABR), 22(3), 75–92. https://doi.org/10.19030/jabr.v22i3.1428
   Google Scholar
• Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review, 87(2), 675–703. https://doi.org/10.2308/accr-10196
   Web of Science ®Google Scholar