The Effect of Financial Architecture on Corporate Performance at Different Stages of the Lifecycle

This paper provides the analyses of interrelation between the financial architecture and stage of the corporate lifecycle. The study determines influence of the financial architecture elements on the corporate performance of growing and mature companies. Separation between stages of the lifecycle was made by comparing revenue growth rates and the industry growth for the period, also analysis of the company’s cash flows from three types of activities was taken into account. The results indicate existence of the significant changes in the ownership structure, corporate governance and capital structure effects on the growing company’s performance comparing with corporate performance on the stable stage. It contradicts identity of the efficiency factors for all firms, and provides an evidence that taking lifecycle stage into account is needed for managing the company and making strategic decisions.