Corporate Life Cycle and Firms’ Performance: An Empirical Study on DSE Listed Companies (IT Sector)

Abstract

This topic has been chosen to investigate the effect of the corporate life cycle on the firm's performance. There are ten IT companies listed on the Dhaka Stock Exchange (DSE). This study investigates several financial years’ performance of 10 IT Companies listed in DSE. We find that how the stages of the life cycle vary over the firm's performance. Several variables of the corporate life cycle are used such as introduction, growth, mature, shake out, and decline which are used to measure the return on asset for the IT Company. Measuring company performance is a very important task to survive in the market. The profitability can pass through totally different stages during its life cycle. The profitability can pass through totally different stages during its life cycle. The main purpose of this study was to spot the variables that affect the profitability or firm’s performance of DSE listed IT Company. In line with the speculation of the life cycle, the characteristics of all variables of a company affected by the stage of the corporate life cycle that firms are set in it. There’s stagnation in growth at this point. The profitability could stay during this state for several years solely to decline and dissolve eventually. However, firms handle this stage of the corporate life cycle can confirm what proportion longer they need to be left within the field. My results show that the profit of those firms increased at the intro and growth level, and later at the maturity level, the profit decreased a small amount once more. It might be some reason that the growth stage of the life cycle of firms wherever firms have taken several types of initiatives like multiplied new product channels, or they were significantly proactive, or they were purposeful. The second chapter of this paper is the Literature Review, which provides detailed related information and documented pieces of evidence from previous studies. The third chapter outlines the overall research methodology including data collection and sample size description and sample, sampling technique, data sources, and data analysis technique of the study. Data have been collected from the annual report of the Dhaka Stock Exchange-listed ten IT Companies. The fourth chapter has examined the findings of this study in an appropriate table and data analysis comprises a decent heading and description. This study has identified several factors from the corporate life cycle measurement that all the variables influence company profitability. Some of these factors greatly influence firm performance and some factors have great importance and some others have moderate importance on company decision-making. Finally, we have presented with the overall situation of the corporate life cycle stages of our chosen company, and the improvement of the study.