Why is company life cycle so important in real financial world?

Question

e.g. Is it important to understand:

1 share price reaction for companies in different life cycle stages?

2 management (e.g. monitoring system) for companies in different life cycle stages?

Answer 1

Yes of course it is important. It is important to understand the huge risk of a company at the beginning of its life cycle and also the risks of a mature company, which cannot change or reinvent itself quickly or if at all (Like IBM) I think Jim Slater coined the phrase Elephants can't run.