An Empirical Study on Identification of Corporate Life Cycle Phases

Cong FENG, Xinyan PENG


This paper classifies corporate life cycle in four stages, from start-up, through growth, maturity and deline. 762 listed manufactory corporations have been used as sample in empirical analysis methodology. Profit margin is chosen as the fundamental index first, then the index of development trend that based on comparing with average similar companies in this industry is constructed. According to those indexes that are chosen from half time of the whole corporate life cycle, we can demonstrate that what kind of life cycle phases are corporations at.


Corporate life cycle; Identification; Net profit margin on sales; Development trend

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