Dynamic resource-based view is the major inspiration for this study, which signifies the changes
in paths & patterns of the evolution in organizational capabilities during its LCS. Using
Dickinsons (2011) firms LCS, the study determined the diverse behavior of traditionally establish explanatory
variables across stages. For the purpose of analysis the GMM model is used, the study conducted a comparative
analysis of developed and emerging markets in Asia. The results showed
higher COE capital during introduction and decline stages in emerging
markets implying trade-off theory and dynamic resource-based view. The
study denies the association between COE capital and market-to-book value
in developed markets in line with the market timing theory. It concluded
that COEs explanatory factors evolve across markets and firms LCS the
explanatory power of the general model is much higher when the study
included LCS in its main model justifying a resource-based view.
Ph.D. Scholar, Management Sciences, Comsats University, Islamabad, Pakistan.
Assistant Professor, Management Sciences, Comsats University, Islamabad, Pakistan.
Lecturer, science and technology unit, Umm Al Qura University, Makkah KSA, Saudi Arabia.
Firm Life Cycle Stages (FLCS); Cost of equity capital (COE); market-tobook value; Asian markets