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COVID-19 and Capital Structure: A Study of Swedish Firms

van Lierop, Pepijn LU ; Eriksson, Felix LU and Wemlert, Gustaf LU (2025) FEKH89 20251
Department of Business Administration
Abstract
Title: COVID-19 and Capital Structure: A Study of Swedish firms. Seminar date: 2025-06-03. Course: FEKH89, Degree Project in Corporate Finance, Business Administration, 15 credits. Authors: Pepijn van Lierop, Gustaf Wemlerth, Felix Eriksson. Advisor: Maria Gårdängen. Key Words: Capital Structure, Leverage, COVID-19, Determinants, Sweden. Research Question: Did the COVID-19 pandemic change the effect of determinants on capital structure in Swedish companies? Purpose: This study aims to investigate whether COVID-19 affected Swedish firms' capital structure. Methodology: This study employs a quantitative approach, gathering data from Capital IQ. Analyses are based on multiple linear regressions conducted on balanced panel data. Theoretical... (More)
Title: COVID-19 and Capital Structure: A Study of Swedish firms. Seminar date: 2025-06-03. Course: FEKH89, Degree Project in Corporate Finance, Business Administration, 15 credits. Authors: Pepijn van Lierop, Gustaf Wemlerth, Felix Eriksson. Advisor: Maria Gårdängen. Key Words: Capital Structure, Leverage, COVID-19, Determinants, Sweden. Research Question: Did the COVID-19 pandemic change the effect of determinants on capital structure in Swedish companies? Purpose: This study aims to investigate whether COVID-19 affected Swedish firms' capital structure. Methodology: This study employs a quantitative approach, gathering data from Capital IQ. Analyses are based on multiple linear regressions conducted on balanced panel data. Theoretical perspectives: This study is based on the Market Timing Theory, the Pecking Order Theory, and the Trade-Off Theory. Results: Swedish companies reduced their leverage during the COVID-19 years, and the determinants showed significant results. Conclusions: It turned out that there is no single theory that alone explains the choice of capital structure in Swedish companies. Furthermore, financial decision-making did not change during the pandemic. (Less)
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author
van Lierop, Pepijn LU ; Eriksson, Felix LU and Wemlert, Gustaf LU
supervisor
organization
course
FEKH89 20251
year
type
M2 - Bachelor Degree
subject
keywords
Capital structure, Leverage, COVID-19, Determinants, Sweden
language
English
id
9197806
date added to LUP
2025-09-16 10:27:57
date last changed
2025-09-16 10:27:57
@misc{9197806,
  abstract     = {{Title: COVID-19 and Capital Structure: A Study of Swedish firms. Seminar date: 2025-06-03. Course: FEKH89, Degree Project in Corporate Finance, Business Administration, 15 credits. Authors: Pepijn van Lierop, Gustaf Wemlerth, Felix Eriksson. Advisor: Maria Gårdängen. Key Words: Capital Structure, Leverage, COVID-19, Determinants, Sweden. Research Question: Did the COVID-19 pandemic change the effect of determinants on capital structure in Swedish companies? Purpose: This study aims to investigate whether COVID-19 affected Swedish firms' capital structure. Methodology: This study employs a quantitative approach, gathering data from Capital IQ. Analyses are based on multiple linear regressions conducted on balanced panel data. Theoretical perspectives: This study is based on the Market Timing Theory, the Pecking Order Theory, and the Trade-Off Theory. Results: Swedish companies reduced their leverage during the COVID-19 years, and the determinants showed significant results. Conclusions: It turned out that there is no single theory that alone explains the choice of capital structure in Swedish companies. Furthermore, financial decision-making did not change during the pandemic.}},
  author       = {{van Lierop, Pepijn and Eriksson, Felix and Wemlert, Gustaf}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{COVID-19 and Capital Structure: A Study of Swedish Firms}},
  year         = {{2025}},
}