Rethinking the balance sheet
(2015) FEKH89 20151Department of Business Administration
- Abstract
- Abstract
Title Rethinking the balance sheet
Seminar date 05 June 2015
Course FEKH89, degree project undergraduate level, Business Administration, 15 university credit points, ECTS
Authors Victor Estwall, Hugo Oftedal and Andreas Åström
Advisor Tore Eriksson
Keywords Return on assets, firm performance, corporate finance, regression analysis, balance-sheet compositions
Purpose The aim of this study is to investigate what firm specific variables affect return on assets during a time of economic recession. The study also aims to analyze potential differences in these variables between firms in the industrial and technology sector.
Methodology The methodology chosen in this study is of a quantitative and deductive nature,... (More) - Abstract
Title Rethinking the balance sheet
Seminar date 05 June 2015
Course FEKH89, degree project undergraduate level, Business Administration, 15 university credit points, ECTS
Authors Victor Estwall, Hugo Oftedal and Andreas Åström
Advisor Tore Eriksson
Keywords Return on assets, firm performance, corporate finance, regression analysis, balance-sheet compositions
Purpose The aim of this study is to investigate what firm specific variables affect return on assets during a time of economic recession. The study also aims to analyze potential differences in these variables between firms in the industrial and technology sector.
Methodology The methodology chosen in this study is of a quantitative and deductive nature, adopted to answer the research questions. Two regression models have been formed to show the relationship between the return on assets and the variables, as well as sectorial differences.
Theoretical perspectives The theoretical framework of this paper consists of previous research on the variables presented including the main theories on capital structure.
Empirical results This paper’s empirical findings are based on historical data from 42 companies in the industrial and technology sector. The data collected covers a period of six years, yielding 252 observations.
Conclusions This study finds several significant variables that affect return on assets, both contradicting and building on previous research. The findings underline the importance for companies to locate and follow its value creating core operations during times of economic recession. Further on, firms of the two sectors did show differing effects of variables. The findings also contribute to the existent literature in that it introduces a non-linear effect on all variables, and strengthens the basis for analysis in the paper. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7512019
- author
- Åström, Andreas LU ; Oftedal, Hugo LU and Estwall, Victor Sven LU
- supervisor
- organization
- alternative title
- How to compose the balance sheet to improve firm performance
- course
- FEKH89 20151
- year
- 2015
- type
- M2 - Bachelor Degree
- subject
- keywords
- balance-sheet compositions, regression analysis, corporate finance, firm performance, Return on assets
- language
- English
- id
- 7512019
- date added to LUP
- 2015-09-15 16:26:46
- date last changed
- 2015-09-15 16:26:46
@misc{7512019, abstract = {{Abstract Title Rethinking the balance sheet Seminar date 05 June 2015 Course FEKH89, degree project undergraduate level, Business Administration, 15 university credit points, ECTS Authors Victor Estwall, Hugo Oftedal and Andreas Åström Advisor Tore Eriksson Keywords Return on assets, firm performance, corporate finance, regression analysis, balance-sheet compositions Purpose The aim of this study is to investigate what firm specific variables affect return on assets during a time of economic recession. The study also aims to analyze potential differences in these variables between firms in the industrial and technology sector. Methodology The methodology chosen in this study is of a quantitative and deductive nature, adopted to answer the research questions. Two regression models have been formed to show the relationship between the return on assets and the variables, as well as sectorial differences. Theoretical perspectives The theoretical framework of this paper consists of previous research on the variables presented including the main theories on capital structure. Empirical results This paper’s empirical findings are based on historical data from 42 companies in the industrial and technology sector. The data collected covers a period of six years, yielding 252 observations. Conclusions This study finds several significant variables that affect return on assets, both contradicting and building on previous research. The findings underline the importance for companies to locate and follow its value creating core operations during times of economic recession. Further on, firms of the two sectors did show differing effects of variables. The findings also contribute to the existent literature in that it introduces a non-linear effect on all variables, and strengthens the basis for analysis in the paper.}}, author = {{Åström, Andreas and Oftedal, Hugo and Estwall, Victor Sven}}, language = {{eng}}, note = {{Student Paper}}, title = {{Rethinking the balance sheet}}, year = {{2015}}, }