C

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Financial information relevance and financial
policy along the corporate lifecycle

• Cédric VAN APPELGHEM
• PhD Supervisor Prof. Pascal Louvet

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Presentation structure

• Introduction Corporate Lifecycle
• Implications for financial information
• Research question
• Data and methodology
• Agenda and potential difficulties
• Theoretical and managerial implications

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Corporate lifecycle
New product or market introduced
Activity declines
Activity is mature
Activity expands
Activity starts
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Impact on financial information and corporate
financial policy

• Difficulty assessing start-up firms and their
  performance
• Information asymetry between insiders and other
  investors
• Financial information relevance lifecycle (Disle,
  2004 Dumontier, 2004)

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Research question

• How does corporate financial information
  relevance influence corporate financial policy
  and external investment along the corporate
  lifecycle?

Ownership structure
Debt maturity structure
Corporate performance
External Investment
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Data and methodology

• European data extracted from Thomson Financial or
  Osiris
• 16 countries
• 2000- 4000 samples
• Excluding financial firms
• 4 portfolios of firms based on corporate
  lifecycle steps
• Principal component analysis

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Research Agenda and potential difficulties

• Next 6 months Building development stage
  portfolios
• Finding missing data in Osiris
• Circulating papers worldwide

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Theoretical implications

• Clarify impact of corporate lifecycle phase on
• firm financial policy
• Managerial Legislative implications
• Improve start-up funding and rescue of bankrupt
  firms

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• Thank you for your attention!
• What about your questions?