The Association Between Cash Flow and Leverage for Firm Life Cycle


The study examines the effect of cash flow and leverage in firm life cycle as the cash flow from operating, investing, and financing are different in each stage. The method used in this study is purposive sampling in which 101 manufacturing firms are selected as the sample. The unit of analysis is 606 observations. Chi-square test is used to analyze the data. The finding indicates that cash flow from operation is not significant based on firm life cycle, while cash flow from investment and financing as well as debt to equity ratio are found to be significant.



Keywords: cash flow, leverage, firm life cycle

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