Corporate Life Cycle, Risk-Taking and Investor Sentiment: Evidence from Tehran Stock Exchange

One of the most important economic features of companies is the life cycle. According to the life cycle theory, the importance of risk and performance indicators varies over the life cycle stages. The present research studies the impact of life cycle Stage and investor sentiment on risk-taking. To this end, 170 companies listed in the Tehran Stock Exchange during the years 1384 to 1395 were selected as the research sample and were studied using panel data method. The hypothesis testing method is also multivariate regression with the least squares estimation method. To measure risk taking, two risk-taking indexes named shareholders and managers risk-taking were used; investor sentiment were also measured through the ratio of stocks turnover and life cycles through the model of DeAngelo et al. (2006).The results show that risk-taking at the stages of emergence (start) and growth of the life cycle is more than the stages of mature and decline. Also, the results indicate that with increasing investor sentiment, risk taking increases in life cycle stages.