Analysis of the Corporate Life Cycle using the Gompertz Model Focused on Korean Pharmaceutical Longevity Companies

• 발행기관: 국제융합경영학회
• 저자명: Kyu-Jin CHOI Kang-Sun LEE Sung-Wook KANG Dae-Myeong CHO
• 간행물 정보: 『융합경영연구』Vol.11 No.1, 31~44쪽, 전체 14쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2023.02.28

영문 초록

Purpose: This study aims to figure out the characteristics of corporate life cycle and resource input in terms of the sustainability diagnosis of pharmaceutical companies in Korea. Research design, data, and methodology: Using the Gompertz model under the assumption that companies have finite resources, this study tries quantitative interpretation of life cycle and resource input pattern for longevity companies with 25 years of experience among 158 pharmaceutical companies listed on Korean stock market based on maturity of revenue. Results: The study found revenue maturity through Gompertz model was statistically correlated with enterprise value. According to the life cycle analysis, more than 95% of 59 pharmaceutical companies were in the growth and maturity phase and have an average life cycle of 88 years and an average remaining life of 52 years. Regarding maturity profile of resource input, maturity of employees was generally high more than 60% and this meant there was jobless growth in Korean pharmaceutical industry. Conclusion: This study demonstrated there is a high statistical correlation between the maturity of a company's resource input and its revenue and enterprise value. It is believed that these results could be utilized as a basis for high fidelity function that predict revenue and enterprise value based on resource input information.

키워드

Corporate Life Cycle Gompertz Model Revenue Maturity Enterprise Value