the relationship between capital investment choice and capital productivity: a test of firm life cycle theory (a comparative investigation of cyclical and non-cyclical companies)

In the current study, the relationship between the stages of firm life cycle and capital productivity and mediation effect of the capital investment choice in the two groups of companies have been examined and compared. the results of ex- amine of 118 companies accepted in tehran stock exchange in 7 years showed that there is a positive relationship between introduction, growth and maturity stages with capital productivity in the cyclical and non-cyclical companies. re- garding the cyclical companies, a positive relationship was witnessed between the decline stage and capital productivity. such a relation, however, was not found between the two variables in non-cyclical companies as well as, no significant relationship was observed among the stages of introduction, growth, maturity and the capital investment choice in both groups of companies. in non-cyclical com- panies, the relationship between the decline stage and the capital investment choice was positive. also, the results of the sobel test did not approve the media- tion role of the capital investment choice between the stages of the life cycle and capital productivity. therefore, it seems that in the introduction, growth and ma- turity stages of both groups of companies, capital productivity has occurred through the optimal use of existing assets.