The moderating role of corporate governance on the relationship between a firm’s product lifecycle and risk-taking
Management accounting theories claim that firms experience different risks during different stages of a product’s lifecycle. This study examines the moderating role of corporate governance on the relationship between a firm’s product lifecycle and its risk- taking aspects. The study was conducted fr...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/11969/1/15968-62497-1-PB.pdf http://journalarticle.ukm.my/11969/ http://ejournal.ukm.my/ajac/issue/view/1033 |
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| Summary: | Management accounting theories claim that firms experience different risks during different stages of a product’s lifecycle. This study examines the moderating role of corporate governance on the relationship between a firm’s product lifecycle and its risk- taking aspects. The study was conducted from 2006 to 2014 in the Tehran Stock Exchange. We conducted a statistical panel data analysis and the sample consisted of 128 firms (1,152 firm-year observations). The results showed that the decline stage of the product life cycle is the only stage that would affect the risk-taking of the selected firms. Conceivably, there is a positive relationship between the decline stage of the product lifecycle and risk-taking. In addition, the results indicate a positive relationship between the growth and decline stages of a firm’s product lifecycle and its risk-taking when corporate governance plays a moderating role. In short, when corporate governance acts as a moderating variable, the relationship between a firm’s product lifecycle and its risk-taking is lower than the time when there is no such variable. Hence, regulators and managers should consider the role of corporate governance in all the stages of a product’s lifecycle to ensure successful firm decisions and strategies. |
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