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The Capital Structure Puzzle of SME's - Evidence from the Swedish Security Industry

Andree, Caroline and Källberg, Christoffer (2008)
Department of Business Administration
Abstract
The purpose of this thesis is to ascertain the main determinable factors of Swedish SMEs capital structure decisions and to investigate whether existing capital structure theories are applicable on Swedish SME financing. We have used panel data to run regressions of various capital structure determinants on three measures of capital structure; short- term debt, long-term debt and total debt. We found that growth opportunities, profitability and age are the most important capital
structures determinants for our sample. Firm size shows a small explanatory result but the effective tax rate and the asset tangibility do not seem to explain the capital structure at all. The
maturity matching principle is considered significant.
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author
Andree, Caroline and Källberg, Christoffer
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Capital Structure, SME, Swedish Security Industry, Leverage, Management of enterprises, Företagsledning, management
language
Swedish
id
1346863
date added to LUP
2008-06-05
date last changed
2012-04-02 17:12:24
@misc{1346863,
  abstract     = {The purpose of this thesis is to ascertain the main determinable factors of Swedish SMEs capital structure decisions and to investigate whether existing capital structure theories are applicable on Swedish SME financing. We have used panel data to run regressions of various capital structure determinants on three measures of capital structure; short- term debt, long-term debt and total debt. We found that growth opportunities, profitability and age are the most important capital
structures determinants for our sample. Firm size shows a small explanatory result but the effective tax rate and the asset tangibility do not seem to explain the capital structure at all. The
maturity matching principle is considered significant.},
  author       = {Andree, Caroline and Källberg, Christoffer},
  keyword      = {Capital Structure,SME,Swedish Security Industry,Leverage,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The Capital Structure Puzzle of SME's - Evidence from the Swedish Security Industry},
  year         = {2008},
}