Document Type : Original Article
Islamic Azad University, Qazvin Branch, Iran
The purpose of this study is to compare the method of financing through capital increase with the method of borrowing from banks in the stages of growth and maturity of the life cycle of companies listed on the Tehran Stock Exchange. To achieve this goal, Dickinson (2011) model was used in calculating the life cycle of the company, the statistical sample includes 80 companies during the period 2009 to 2018. Hypotheses were tested by comparing the means using Eviews software. The results showed that in the growth stage of companies, financing isn’t performed by increasing cash capital more than borrowing from banks; While in the maturity stage of companies, financing through borrowing from banks is more than cash capital.