Advanced

Capital Structure - Firm Specific Factors that Determine the Capital Structure on the Stockholm Stock Exchange

Lundberg, Fredrik and Nellbeck, David (2009)
Department of Business Administration
Abstract
This thesis aims to test firm specific factors that determine the capital structure of companies on the Stockholm stock exchange. The results will be compared with the results of earlier studies from USA and Switzerland. Furthermore, we will conclude if these firm specific factors have changed over time. The theories explained and used in this thesis are the Modigliani Miller model, Trade-Off theory, Pecking order theory and the Market timing theory. We have also used other research articles to compare our results. This thesis is based on a quantitative approach, which through a panel data analysis includes hypothesis testing. Three out of our seven different firm specific factors indicates to be significant. They are with the most... (More)
This thesis aims to test firm specific factors that determine the capital structure of companies on the Stockholm stock exchange. The results will be compared with the results of earlier studies from USA and Switzerland. Furthermore, we will conclude if these firm specific factors have changed over time. The theories explained and used in this thesis are the Modigliani Miller model, Trade-Off theory, Pecking order theory and the Market timing theory. We have also used other research articles to compare our results. This thesis is based on a quantitative approach, which through a panel data analysis includes hypothesis testing. Three out of our seven different firm specific factors indicates to be significant. They are with the most significant first, growth, profitability and size. Furthermore, the tests completed on our regression analysis indicate superior results. The conclusion of our thesis indicates that the firm specific factors that determine the capital structure on the Stockholm Stock Exchange are comparable with the earlier results from both USA and Switzerland. However, our results indicate that it has been a change in the effect of these factors over time. (Less)
Please use this url to cite or link to this publication:
author
Lundberg, Fredrik and Nellbeck, David
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Capital structure, Panel data, Firm specific factors, Trade-Off theory, Pecking Order theory, Management of enterprises, Företagsledning, management
language
Swedish
id
1961489
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:24:32
@misc{1961489,
  abstract     = {This thesis aims to test firm specific factors that determine the capital structure of companies on the Stockholm stock exchange. The results will be compared with the results of earlier studies from USA and Switzerland. Furthermore, we will conclude if these firm specific factors have changed over time. The theories explained and used in this thesis are the Modigliani Miller model, Trade-Off theory, Pecking order theory and the Market timing theory. We have also used other research articles to compare our results. This thesis is based on a quantitative approach, which through a panel data analysis includes hypothesis testing. Three out of our seven different firm specific factors indicates to be significant. They are with the most significant first, growth, profitability and size. Furthermore, the tests completed on our regression analysis indicate superior results. The conclusion of our thesis indicates that the firm specific factors that determine the capital structure on the Stockholm Stock Exchange are comparable with the earlier results from both USA and Switzerland. However, our results indicate that it has been a change in the effect of these factors over time.},
  author       = {Lundberg, Fredrik and Nellbeck, David},
  keyword      = {Capital structure,Panel data,Firm specific factors,Trade-Off theory,Pecking Order theory,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Capital Structure - Firm Specific Factors that Determine the Capital Structure on the Stockholm Stock Exchange},
  year         = {2009},
}