Financial Performance Across the Firm Life Cycle: The Role of Family Control and Diversification Strategy
Eva Sari Manalu, Poppy Nurmayanti, Ulfa Afifah

Universitas Riau

Abstract

This study aims to examine the influence of family control and diversification strategy on profitability in manufacturing companies in Indonesia during the start-up, growth, mature, and decline stages. The data used in this study is secondary data obtained from the Indonesian Stock Exchange between 2018 and 2023, focusing on manufacturing companies listed and were analyzed using SPSS version 27. The regression test results show family control and diversification strategy on profitability in Indonesian companies across three stages of the firm life cycle: start-up and growth, mature, and decline. The findings show that family control has a negative impact on profitability in all stages, while diversification strategy has a positive impact, particularly in the start-up and growth stage. These findings provide insights into how family control and diversification strategy affect profitability across different stages of the firm life cycle.

Keywords: Family Control- Diversification Strategy- Financial Performance- Firm Life Cycle &#8195-

Topic: Financial accounting