Uploaded August 2024 | Updated September 2026, 1 week ago
In this session, I look at the appeal of the a unifying theory, something that explains everything in a discipline, and where that search has taken us in finance, befor introducing the corporate life cycle as a qualifying entrant, because it explains so much of what is observable in corporate, investment and management behavior.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch1.pdf
Exercise:
a. Pick five companies that span the life cycle spectrum, from young growth to declining. This may take a little experimentation, and you may have to revisit your choices as you move through the sessions. If you want, pick a company based upon corporate age:
1. A (young) company that has gone public in the last five years
2. A high growth (in revenues) company, with a small market cap
3. A growth company, with a large market cap
4. An older company that is still healthy and growing
5. An older company struggling to grow
b. Look at each of these companies and assess where they were in the life cycle ten years ago.
In this session, I look at the appeal of the a unifying theory, something that explains everything in a discipline, and where that search has taken us in finance, befor introducing the corporate life cycle as a qualifying entrant, because it explains so much of what is observable in corporate, investment and management behavior.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch1.pdf
Exercise:
a. Pick five companies that span the life cycle spectrum, from young growth to declining. This may take a little experimentation, and you may have to revisit your choices as you move through the sessions. If you want, pick a company based upon corporate age:
1. A (young) company that has gone public in the last five years
2. A high growth (in revenues) company, with a small market cap
3. A growth company, with a large market cap
4. An older company that is still healthy and growing
5. An older company struggling to grow
b. Look at each of these companies and assess where they were in the life cycle ten years ago.
