Does Life-Cycle Stage Affect Companies’ Revenue Predictability? Evidence from Borsa Istanbul

Gökberk CAN; Samet GÜNAY

doi:https://doi.org/10.21547/jss.1025389

Article Details

Does Life-Cycle Stage Affect Companies’ Revenue Predictability? Evidence from Borsa Istanbul

Authors:

Gökberk CAN | Samet GÜNAY

Publisher:

Gaziantep University

Main Topics:

General management

Journal:

Gaziantep University Journal of Social Sciences 2022 Vol.21 Issue 2, pp.813-823

Document Type:

Article

Publication Date:

4/2022

Document Language:

English

Document ID (Org No.):

2000443599

Frequency:

Quarterly

eISSN:

2149-5459

pISSN:

1303-0094

DOI:

https://doi.org/10.21547/jss.1025389

Abstract:

 

In this paper we test the relationship between life-cycle stages and revenue predictability. We used three-year revenue divided by average total assets as the revenue predictability. Our life-cycle estimation is based on Dickinson’s (2011) cash-flow proxy model. Instead of using dummy variables and omitted the category with least observations, following Hansen et al. (2018), we assigned values of 0, 0.25, 0.50, 0.75, and 1 for the stages of introduction, growth, mature, shake-out, and decline, respectively. We used firm/year fixed effects regression to estimate our model. Our empirical evidence points out that companies' revenue predictability increases as the revenue volatility decreases.

 

Bu çalışmada, yaşam döngüsü ile gelir öngörülebilirliği arasındaki ilişki test edilmiştir. Gelir öngörülebilirliği üç yıllık hasılatın standart sapmasının ortalama toplam varlıklara bölünmesiyle elde edilmiştir. Yaşam döngüsü tahminimiz, Dickinson'ın (2011) nakit akışı modeline dayanmaktadır. Hansen vd. (2018), giriş, büyüme, olgunlaşma, durgunluk ve düşüş aşamaları için sırasıyla 0, 0,25, 0,50, 0,75 ve 1 atadık. Modelimizi tahmin etmek için firma/yıl sabit etkiler regresyonunu kullandık. Ampirik kanıtlarımız, hasılat oynaklığı azaldıkça şirketlerin hasılat tahmin edilebilirliğinin arttığına işaret ediyor.

Article Details

Does Life-Cycle Stage Affect Companies’ Revenue Predictability? Evidence from Borsa Istanbul

Authors: Gökberk CAN | Samet GÜNAY

Publisher: Gaziantep University

Main Topics: General management

Journal: Gaziantep University Journal of Social Sciences 2022 Vol.21 Issue 2, pp.813-823

Document Type: Article

Publication Date: 4/2022

Document Language: English

Document ID (Org No.): 2000443599

Frequency: Quarterly

eISSN: 2149-5459

pISSN: 1303-0094

DOI: https://doi.org/10.21547/jss.1025389

Issues

Authors:

Gökberk CAN | Samet GÜNAY

Publisher:

Gaziantep University

Main Topics:

General management

Journal:

Gaziantep University Journal of Social Sciences 2022 Vol.21 Issue 2, pp.813-823

Document Type:

Article

Publication Date:

4/2022

Document Language:

English

Document ID (Org No.):

2000443599

Frequency:

Quarterly

eISSN:

2149-5459

pISSN:

1303-0094

DOI:

https://doi.org/10.21547/jss.1025389