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Rethinking the balance sheet

Åström, Andreas LU ; Oftedal, Hugo LU and Estwall, Victor Sven LU (2015) FEKH89 20151
Department 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)
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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
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},
  keyword      = {balance-sheet compositions,regression analysis,corporate finance,firm performance,Return on assets},
  language     = {eng},
  note         = {Student Paper},
  title        = {Rethinking the balance sheet},
  year         = {2015},
}