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How do macroeconomic factors affect capital structure? The case of Swedish firms

Taoulaou, Aris LU and Burchuladze, Giorgi LU (2014) BUSN88 20141
Department of Business Administration
Abstract
Using unbalanced panel data for the sample period 2002-2012, this study investigates the
relation between macroeconomic factors and the capital structure of 233 Swedish companies.
Using the Random Effects model, this paper identifies the macroeconomic determinants that
affect the capital structure of Swedish firms. We find that the leverage measures are positively
related to the GDP Growth rate, Interest rate, Banking Credit as percentage of GDP ratio and
the Stock price performance, while the Inflation rate has a negative effect on the leverage.
This paper also provides evidence that banking sector is important for the Swedish firms.
Please use this url to cite or link to this publication:
author
Taoulaou, Aris LU and Burchuladze, Giorgi LU
supervisor
organization
course
BUSN88 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Capital Structure, Leverage, Macroeconomic Factors, Random Effects Model, Panel Data
language
English
id
4696501
date added to LUP
2014-10-13 14:39:49
date last changed
2014-10-13 14:39:49
@misc{4696501,
  abstract     = {{Using unbalanced panel data for the sample period 2002-2012, this study investigates the
relation between macroeconomic factors and the capital structure of 233 Swedish companies.
Using the Random Effects model, this paper identifies the macroeconomic determinants that
affect the capital structure of Swedish firms. We find that the leverage measures are positively
related to the GDP Growth rate, Interest rate, Banking Credit as percentage of GDP ratio and
the Stock price performance, while the Inflation rate has a negative effect on the leverage.
This paper also provides evidence that banking sector is important for the Swedish firms.}},
  author       = {{Taoulaou, Aris and Burchuladze, Giorgi}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How do macroeconomic factors affect capital structure? The case of Swedish firms}},
  year         = {{2014}},
}