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The Debt Maturity Profile and its Implications for Capital Structure

Drott, Markus and Olén, Martin (2010)
Department of Economics
Abstract
Purpose: The purpose of this thesis is to investigate whether the length of the maturity profile of a firm’s debt has any implications for the capital structure. Theoretical perspectives: A deductive approach, using econometric methodology to examine the correlation ( if any) between the selected variables, and the significance (if any) of that correlation. The output of our econometric model is further analyzed using widely accepted theories on capital structure. Conclusion: The debt maturity profile has a statistically significant positive relationship with the debt to asset percentage of the studied firms. Thus, we draw the conclusion that it has implications for capital structure. It is however our opinion that further research is... (More)
Purpose: The purpose of this thesis is to investigate whether the length of the maturity profile of a firm’s debt has any implications for the capital structure. Theoretical perspectives: A deductive approach, using econometric methodology to examine the correlation ( if any) between the selected variables, and the significance (if any) of that correlation. The output of our econometric model is further analyzed using widely accepted theories on capital structure. Conclusion: The debt maturity profile has a statistically significant positive relationship with the debt to asset percentage of the studied firms. Thus, we draw the conclusion that it has implications for capital structure. It is however our opinion that further research is needed to ascertain the exact properties of this correlation, as well as pinpointing the reasons behind it. (Less)
Please use this url to cite or link to this publication:
author
Drott, Markus and Olén, Martin
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
economic systems, economic theory, econometrics, Economics, maturity profile, debt to assets, fixed effects, Capital Structure, Leverage, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1607353
date added to LUP
2010-03-05 00:00:00
date last changed
2010-08-03 10:53:06
@misc{1607353,
  abstract     = {Purpose: The purpose of this thesis is to investigate whether the length of the maturity profile of a firm’s debt has any implications for the capital structure. Theoretical perspectives: A deductive approach, using econometric methodology to examine the correlation ( if any) between the selected variables, and the significance (if any) of that correlation. The output of our econometric model is further analyzed using widely accepted theories on capital structure. Conclusion: The debt maturity profile has a statistically significant positive relationship with the debt to asset percentage of the studied firms. Thus, we draw the conclusion that it has implications for capital structure. It is however our opinion that further research is needed to ascertain the exact properties of this correlation, as well as pinpointing the reasons behind it.},
  author       = {Drott, Markus and Olén, Martin},
  keyword      = {economic systems,economic theory,econometrics,Economics,maturity profile,debt to assets,fixed effects,Capital Structure,Leverage,economic policy,Nationalekonomi,ekonometri,ekonomisk teori,ekonomiska system,ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Debt Maturity Profile and its Implications for Capital Structure},
  year         = {2010},
}