Can macroeconomic factors explain the choice of capital structure? - A study of listed non-financial firms in Sweden
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
This study investigates the impact macroeconomic factors have on corporate capital structure in Sweden. We use a panel data analysis of unbalanced data for the sample period, 2005-2014. While previous research has shown that key factors internal to the firm are highly correlated with leverage, such as profitability, asset tangibility and firm size, we add external factors and test for economic growth, inflation, interest rates, corporate tax rates, and exchange rates. Our models do not present any substantial explanatory power for the relationship between the macroeconomic environment and different leverage ratios. This study finds some support for certain indicators, although not consistent across ratios.
Place, publisher, year, edition, pages
2016. , 45 p.
Capital Structure, Macroeconomic Factors, Leverage, Panel Data Regression
Economics and Business
IdentifiersURN: urn:nbn:se:uu:diva-302858OAI: oai:DiVA.org:uu-302858DiVA: diva2:968839
Master Programme in Business and Management