Work

Can macroeconomic factors explain the choice of capital structure? - A study of listed non-financial firms in Sweden

Year: 2016

Type: dissertation

Abstract: 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.

Source: KTH Publication Database DiVA (KTH Royal Institute of Technology)

Authors: Aida M.Zein, Per Ångström

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2523260927

Cites: 38

Cited by: 3

Related to: 10