EFFECTS OF LIFE CYCLE STAGES AND FIRM SIZE ON THE PERFORMANCE OF BRAZILIAN COMPANIES
Name: JOCIANE TRINDADE FRÓES DOS SANTOS
Publication date: 01/09/2026
Examining board:
Name |
Role |
|---|---|
| LUIZ CLAUDIO LOUZADA | Presidente |
| PAULO VICTOR GOMES NOVAES | Examinador Externo |
| RAFAEL DE LACERDA MOREIRA | Examinador Interno |
Summary: This study investigated the specific and combined effects of life cycle stages (LCS) and firm
size on the performance of Brazilian publicly traded firms. Ordinary Least Squares (OLS)
models with firm and year fixed effects were estimated using a sample of 2,781 observations
of non-financial firms listed on Brasil, Bolsa, Balcão (B3) from 2001 to 2024. Performance was
assessed through return on assets (ROA), revenue growth, and financial constraints. The results
indicate that firms in the growth and maturity stages exhibit higher profitability in certain
specifications, while the introduction and growth stages are associated with higher growth rates.
Firms in the introduction and decline stages face greater financial constraints, whereas mature
firms face fewer constraints than those in the shake-out stage. Firm size showed a positive and
robust association with revenue growth, but not with ROA or financial constraints. In the
growth and maturity stages, the association between firm size and revenue growth is weaker,
while the advantage of lower financial constraints diminishes as firm size increases. Taken
together, the results demonstrate that firm size moderates the relationships between life cycle
stages and performance in terms of revenue growth and financial constraints, indicating that
life cycle effects vary according to firm size.
