The impact of the company's life cycle on the asymmetric cost behavior pattern and its reflection on the capital structure

Abstract

Our current research aims to demonstrate the impact of the company’s life cycle on the capital structure directly or through the mediation of the asymmetric cost behavior pattern by applying it to a sample of banks listed on the Iraq Stock Exchange, which included 9 banks for the period (2011-2022). The variables were measured in a quantitative manner, as the independent variable, the company’s life cycle, was measured through the positive and negative signals of operating cash flows and investment financing using five stages, namely (launch, growth, maturity, fluctuation, and decline) and analyzed. As for the intermediate variable, asymmetric cost behavior, it was measured through a model. (BBCM adjusted for two periods and the dependent variable, capital structure, was measured through total equity/total assets and total liabilities/total assets. And using regression analysis using the statistical program (SPSS). The results showed that there is a statistically significant effect of the company’s life cycle in the pattern Asymmetric cost behavior. There is a statistically significant effect of the company's life cycle on the capital structure. There is a statistically significant effect of the asymmetric cost behavior pattern on the capital structure. In addition, the asymmetric cost behavior pattern partially mediates the effect of the company's life cycle on Capital Structure Researchers recommend that researchers should try to conduct the same research on companies other than the banking sector or in other countries to determine whether the company’s life cycle is the same, especially since the information obtained from research results from other countries would help shed light On the corporate life cycle.