DOI: 10.36347/sjebm.2015.v02i05.006

Pages: 469-472

One of the most important issues in the field of financing is companies’ assurance of financing investments in the company's life cycle and increasing returns. This Important issue is addressed in the current study. Due to information asymmetry, companies will have different characteristics during their life cycle to meet and achieve the mission and the goal of creating the company. The method of data analysis is correlation and multi regression test. The results show that the relationship between capital structure and debt net in the companies that are in the maturity and decline is stronger than the relationship between capital structure and debt net in companies that are in the growth phase. Also the relationship between capital structure and issued equity in companies that are in the growth Stage is stronger than the relationship between capital structure and issued equity in companies that are in maturity and decline Stage. Finally the relationship between capital structure and retained earnings in companies that are in maturity and decline phase is stronger that the relationship between capital structure and retained earnings in companies that are in the growth Stage.