Abstract

The main objective of the present study is the investigation of the relationship between the companies’ life cycle and their stock liquidity. In the present study, the companies’ separation to growth stages, maturity and decline has been carried out by taking advantage of four elements of sales growth, capital expenditures, dividend to company age ratio based on the method proposed by Anthony and Ramesh according to Park and Chen’s methodology and the turnover rate has been applied as a scale of liquidity. The data collected herein were analyzed in three stages. Firstly, the company members of the study sample volume were classified to the companies in their growth, maturity and decline stages, then the liquidity rate of the companies in each set was investigated and finally the central index comparisons between more than two independent study populations were conducted to investigate the study hypotheses. The results obtained for 459 company years in the time span between 2010 to 2015 indicated that the companies’ stock liquidity is more in their maturity stage than in their decline stage and an equal liquidity rate was found for the growth and maturity stages.