기업수명주기와 자본집약도가 과잉생산과 미래 수익성과의 관련성에 미치는 영향

Abstract

Purpose This study examines the effects of firm life cycle stage on the relationship between over-production and future profitability. This study also examines the effects of capital intensity on the relationship among over-production, future profitability and firm life cycle stages. Design/Methodology/Approach A sample of 7,596 firms listed on the Korea Stock Exchange (KSE) for the period from 2000 to 2018 was used. All dependent and independent variables were winsorized at the top and bottom one percent. Multiple regression analysis was performed to test the hypotheses. Findings Results show that the future profitability relative to the over-production in mature firms or firms at the decline phase is lower than the future profitability in the case of over-production in growth firms, indicating that the firm life cycle stages are important in analyzing the effects of over-production on future profitability. We find different relationship between over-production and future profitability by firm life cycle stages for only firms with high capital intensity. Research Implications The main results indicate that cost structure is an important factor to consider in the analysis of overproduction and future profitability. Such results have pertinent implications in firm life cycle research in that the firm life cycle plays an important role in understanding financial statements when projecting future financial performance.