Abstract

Living organisms have different behaviors in against the same events of their lives. Life cycle theory assumes that companies and enterprises such as all living organisms are born, grown, matured, and then reach the saturation stage, and in the end they decline. Companies and economic entities, like living organisms, are expected to have different behaviors throughout their life cycle. As a result of their strategic decisions and competitive environment, companies pass through the lifecycle and follow specific policies based on each stage of their lives. These policies are reflected in the accounting information of companies. Hence, the recognition of the company's lifecycle helps investors to predict accounting information. Therefore, in this research, our main goal is to review the theoretical foundations of the company's lifecycle and the usefulness of accounting information.