Financial Statements, Items, Life Cycle and Bankruptcy

Bankruptcy and its effect on investors, wealth and generally country economic leads to be one of the important financial researches items. So researchers try to identify items effecting on the bankruptcy. The purpose of this study is to investigate the relation between liquidity and corporate life cycle with bankruptcy and the effect of corporate life cycle on the relation between liquidity and bankruptcy in listed companies in Tehran Stock Exchange. So, three hypotheses about the relation between liquidity and corporate life cycle with bankruptcy and the corporate life cycle effect on the relation between liquidity with bankruptcy have been designed and tested using the data of a sample from listed companies in Tehran Stock Exchange during the period 2012 to 2019. The results of statistical analysis of logit regression indicate that there is a significant negative relation between liquidity and corporate life cycle with bankruptcy. However, corporate life cycle has no effect on the relation between liquidity and bankruptcy.