Syfte: Utvecklingen av skuldsatta företagsförvärv har genomgått betydande förändringar sedan fenomenet först introducerades på 1980-talet, både vad gäller den totala skuldnivån och val av skuldinstrument. Tidigare forskning erbjuder flera alternativa förklaringar till vad som påverkar skuldsättningen. Syftet med studien är därför att undersöka vilka faktorer som påverkar skuldsättningen vid högbelånade företagsförvärv i Sverige. Metod: Studien tillämpar en kvantitativ deduktiv ansats med utgångspunkt i den positivistiska forskningsfilosofin. Studiens insamlade data av sekundärdata inhämtat från Thomson Reuters datastream Refinitiv Eikon. 89 svenska bolag har blivit uppköpta med högbelåning av riskkapitalbolag bolag mellan 2000–2023. Studiens data har sedan analyserats med hjälp av statistikprogrammet SPSS, där univariat, bivariat och multivariata analyser genomförts.  Resultat och slutsats: Resultatet från uppsatsen visar att skuldsättningen i svenska högbelånade företagsförvärv kan förklaras med hjälp av den klassiska hackordningsteorin. Resultatet skiljer sig från forskning från USA och Europa som menar att marknadstajmingsteorin förklarar skuldsättningen bättre vid belånade företagsförvärv. Examensarbetets bidrag: Studien bidrar med kunskap till banker, riskkapitalbolag, företagsledare och investerare. För bankerna innebär arbetet en möjlighet att förbättra riskhanteringen och kreditbedömningen vid långivning. Riskkapitalbolagen kan genomföra bättre investeringsbeslut och skapa hållbara kapitalstrukturer.Förslag till fortsatt forskning: För framtida forskning hade det varit intressant att utvidga urvalet till att studera hela Norden. Det vore också spännande för framtida forskning inom skuldsättning och högbelånade företagsförvärv att göra detta med en kvalitativ ansats. / Aim: The development of leveraged buyouts has undergone significant changes since the phenomenon was first introduced in the 1980s, both in terms of the overall debt levels and the choices of debt instruments. Previous research provides several alternative explanations for what influences the indebtedness. Therefore, the purpose of the study is to examine which factors that influence the leverage in leveraged buyouts in Sweden.  Method: The study employs a quantitative deductive approach based on the positivist research philosophy. The collected data is derived from secondary sources, specifically Thomson Reuters Datastream Refinitiv Eikon. The sample consists of 89 Swedish companies that have been acquired through leverage buyouts by Swedish private equity firms between 2000 and 2023. The study's data has subsequently been analyzed using the statistical software SPSS, with univariate, bivariate, and multivariate analyses conducted. Results and conclusions: The findings of the thesis indicate that the leverage in Swedish leverage buyouts can be explained by employing the classical Pecking order theory. This result differs from research conducted in the United States and Europe, which suggests that market timing theory provides a better explanation for leverage in leverage buyouts. Contribution of the Thesis: The study contributes knowledge to banks, private equity firms, corporate leaders, and investors. For banks, the thesis presents an opportunity to enhance risk management and credit assessment in lending. Private equity firms can make better investment decisions and establish sustainable capital structures. Suggestions for future research: For future research, it would be interesting to expand the sample to encompass the entire Nordic region. It would also be exciting for future research in debt and leverage buyouts to adopt a qualitative approach

This cumulative dissertation extends the literature strand on firm valuation and capital structure under distinctive fiscal considerations by elaborating on corporate finance issues that have not been resolved or not explained in their full magnitude. Essay one reassesses the appropriate valuation of a firm using the APV equation and more appropriately specifying one of its components, the value of tax savings. The second essay thematically follows essay one by utilizing the WACC approach in a multi-state setting under active debt policy. The third and final essay reconsiders capital structure under the artificial restriction of interest deductibility and its resulting influence on the value of potential tax savings. All essays incorporate loss distribution in default for either a partial or a complete loss scenario, thus providing additional insides on this crucial assumption in firm valuation under risky debt.

Finding the optimal capital structure has been a relevant subject for many decades. Therehas for a long time been a discrepancy between observed leverage ratio and those proposedby theory, with many different theories suggested and developed throughout time. One ofthose theories is the Contingent Claims Analysis (CCA). Based initially on Black & Scholes’option-pricing theory and formulas, and pioneered by Merton, the CCA-methodology hasthroughout the years been developed further and moved from pricing liabilities todetermining capital structures. The research and development on CCA-models have for thepast years mostly been on a theoretical level and less about its practical applicability. Thosefew applications that have been made were based on the U.S. market and companies.Ju and Ou-Yang developed one of the most recent CCA-methodologies in 2006,abbreviated as the JOY-model in this study. What distinguishes this model is its ability toshow the non-monotone relation of debt maturity and debt face amount through the morecomplex tradeoffs between tax benefits, bankruptcy costs and transactions cost. With a fewchanges made to it, and with almost all data from the Swedish market and companies, theJOY-model yields higher leverage ratios than what the 5 analyzed companies have today.The optimal leverage ratio, defined as debt value/firm value ranges from 10 – 40% and theoptimal debt maturity period is at 4 – 6 years. Out of all the model parameters, the long-runmean of the stochastic risk-free interest rate has the biggest impact on the final results. TheJOY-model and CCA in general are complex and resource intense models that need certainimprovements. Nonetheless, its overall potential is still promising.

No description available.

Kapitalstrukturen hos svenska fastighetsbolag har sedan finanskrisen år 2007–2008 förändrats avsevärt. Framför allt genom en ökad mängd marknadsfinansiering i form av obligations- och certifikatslån men även genom hybridkapital såsom D- och preferensaktier. Det har skapat nya vägar och strategier för fastighetsbolag att genom sin kapitalstruktur påverka utvecklingen på bolaget. Bolagen har genom de nya finansieringsalternativen nått ut till nya typer av investerare som tidigare inte var aktiva på den svenska fastighetsmarknaden. Det finns dock andra aktörer än fastighetsbolagen själva som påverkar hur deras kapitalstruktur ser ut. Investerare, kreditvärderingsinstitut, finansinspektionen och banker är några av de aktörer som är med och influerar fastighetsbolagen. Studiens syfte är att undersöka svenska fastighetsbolags kapitalstruktur och huruvida kapitalstrukturen påverkas av bolagens fastighetsbestånd. Studien undersöker även hur finansieringstrender och marknadsföreteelser påverkar fastighetsbolags tillgång på kapital. Målsättningen med studien är att dra slutsatser om hur fastighetsbolags fastighetsbestånd, finansieringstrender samt företeelser på marknaden influerar deras kapitalstruktur. Studien är indelad i två delar och inleds med en kvantitativ del som utgångspunkt där skillnader i fastighetsbolags räntebärande skulder undersöks genom deras genomsnittliga direktavkastningskrav använt vid värdering. Den andra delen består av en kvalitativ intervjustudie med semistrukturerade intervjuer med finanschefer/CFO:s på fastighetsbolag, fastighetsanalytiker på bank samt en kreditvärderingsanalytiker på ett kreditvärderingsinstitut. Studien visar att fastighetsbolagens fastighetsbestånd påverkar tillgången och priset på finansiering. Det är däremot svårt att avgöra till hur stor del fastighetsbeståndet påverkar. Det går inte att säga att fastighetsbeståndets risk, mätt i direktavkastningskrav, påverkar fastighetsbolagens räntebärande skuldstruktur. Utifrån intervjustudien kan slutsatser dras att fastighetsbolagens kapitalstruktur påverkas av många parametrar. Fastighetsbolagen kan till största del själva bestämma hur de vill utforma sin kapitalstruktur. De är sällan begränsade att använda sig av något av finansieringsinstrumenten, dock finns det väsentliga prisskillnader beroende på bolagets storlek, renommé, kreditbetyg, ägarstruktur, tillväxttakt och fastighetsbeståndets ekonomiska status. / The capital structure of Swedish real estate companies has changed considerably since the financial crisis in 2007-2008. The change has primarily been through an increased amount of market financing in the form of bonds and certificates of deposit, but also through hybrid capital. It has created new ways and strategies for real estate companies to influence the development of the company through its capital structure. Through the new financingalternatives, the companies have reached out to new types of investors who were not previously active in the Swedish real estate market. However, there are other actors than the real estate companies themselves who influence what their capital structure looks like. Investors, credit rating agencies, the Swedish Financial Supervisory Authority and banks are some of the actors involved in influencing real estate companies. The purpose of the study is to examine the capital structure of Swedish real estate companies and whether the capital structure is affected by the companies' property portfolio. The study also examines how financing trends and market phenomena affect real estate companies' access to capital. The aim of the study is to draw conclusions about how real estate companies' property portfolio, financing trends and phenomena in the market influence their capital structure. The study is divided into two parts and begins with a quantitative part where differences in real estate companies' interest-bearing debts are examined through their average yield used in valuations. The second part consists of a qualitative interview study with semi-structured interviews with CFOs at real estate companies, real estate analysts at banks and a credit rating analyst at a credit rating agency. The study presents that real estate companies' property portfolio affects the supply and price of financing. Although, it is difficult to determine to what extent the property portfolio affects the capital structure. It is not possible to say that the risk of the property portfolio, measured in average valuation yield, affects the real estate companies' interest-bearing debt structure. Based on the interview study, conclusions can be drawn that the real estate companies' capital structure is affected by many parameters. The real estate companies can for the most part decide for themselves how they want to design their capital structure. They are rarely limited to using any of the different financial instruments, however, there are significant price differences depending on the company's size, reputation, credit rating, ownership structure, growth rate and the financial status of the property portfolio.

This thesis investigates the impact of capital structure on the profitability of 58 Savings Banks in Sweden from 2014 to 2020, focusing on the balance between debt and equity. Utilizing panel data regression, the study examines how debt-to-asset ratios and equity ratios affect key profitability metrics such as net interest margin, return on equity, and return on assets. Key findings indicate a negative correlation between debt ratios and both return on assets and equity, suggesting that higher debt levels may impede profitability. Conversely, apositive relationship is observed between equity ratios and return on assets, while return on equity decreases as equity ratios increase. The study also explores the influence of bank size, finding a negative relationship with profitability, which highlights the efficiency of smaller, more regionally-focused banks. Additionally, macroeconomic factors such as GDP growth show a positive correlation with profitability, whereas higher unemployment rates tend to reduce profitability. The study and the results provide valuable insights into the financial strategies that can enhance the performance of Savings Banks, emphasizing the need for a balanced approach to capital structuring within the context of prevailing economic conditions.

During the period of 2013-2022, there have been many interesting developments in the football industry in Europe. From accumulation of debt to disregarding the regulatory framework put in place by UEFA, football clubs have changed their capital structures to accommodate their financing needs. There has been previous research that has found a relationship between ownership structure and financial performance, but none that has explored how ownership structure affects debt and liquidity given current circumstances. The scope of this study was to ultimately determine how the capital structure and the liquidity is affected. This is a broad topic and the authors have covered several aspects within the field. However, there have been suggestions on further research regarding how one could go about valuating a football club as most of the football clubs in Europe have private ownership structures. In the end, the sample consists of 8,588 firm-year observations and adapts a longitudinal methodology. The tests carried out consist of OLS regressions as well as a multivariate regression. To be able to compare the different ownership structures, several regressions were made to put each ownership structure as the reference group. The authors of this thesis found that ownership affects debt and liquidity both individually and collectively. Therefore, answering the research question “What is the effect of ownership structure of football clubs in Europe on debt and liquidity?”. Football clubs in Europe have experienced low profitability, but rather high liquidity. The capital structures of said football clubs contain more debt than equity, where equity is negative in some cases. By comparing ownership structures, their effects on both debt and liquidity differentiate. This thesis contributes to already existing literature by contradicting Modigliani and Millers' assumption regarding bankruptcy costs. It also contributes practically to managers, investors, stakeholders, and regulators by providing context to different key financial metrics.

Titel: Kapitalstruktur i en lågkonjunktur – En kvalitativ studie av medelstora tillverkande företags kapitalstruktur. Forskningsfråga: Hur påverkas kapitalstrukturen i medelstora tillverkande företag av en lågkonjunktur? Syfte: Uppsatsens syfte är att få en förståelse för hur medelstora tillverkande företag resonerar gällande att finansiera sig med eget kapital kontra med skuldfinansiering i en lågkonjunktur. Metod: Studien har genomförts genom en kvalitativ metod med en abduktiv ansats, en kombination av deduktiv och induktiv ansats. Genom denna kombination av metoder har vi tagit del av vetenskapliga artiklar och analyserat vår insamlade empiriska data för att undersöka hur verkligheten stämmer överens med teorin. Slutsats: Studien visade på tre resultat. Det första resultatet visade på att det finns en tydlig koppling mellan ägarstruktur och kapitalstruktur i tillverkande medelstora företag. Privatägda företag tenderar att vara mer flexibla i sina finansieringsval medan koncernägda företag föredrar intern finansiering eller lån under gynnsamma marknadsförhållanden. Det andra resultatet visade på att en gemensam nämnare för alla företagen var betydelsen av en god relation med banken, särskilt i tider av lågkonjunktur eftersom bankens tillgång till likviditet och flexibla avbetalningsplaner kunde bli avgörande. Det tredje resultatet visade på att trots företagens medvetenhet om riskhantering så tolkades begreppet finansiell stress på olika sätt, vilket visar att begreppet är subjektivt. Däremot visade de sig att företagen är flexibla i sina finansieringsval och anpassar sig efter marknadsförhållanden i pressade ekonomiska tider. / Title: Capital structure in a recession – A qualitative study of medium-sized manufacturing companies' capital structure Problem statement: How is the capital structure of medium-sized manufacturing companies impacted by a recession? Purpose: The purpose of the thesis is to gain an understanding of how medium- sized manufacturing companies’ reason regarding financing the firm with equity versus debt during a recession. Method: The study has been conducted through a qualitative method with an abductive approach, combining deductive and inductive approaches. With this combination of methods, we have reviewed scientific articles and analyzed our collected empirical data to gain an overview of how reality aligns with theory. Conclusion: The study showed three main findings. The first finding showed a clear link between ownership structure and capital structure in medium- sized manufacturing companies. Private-owned firms tend to be more flexible in their financing choices, whereas group-owned firms prefer internal financing or loans under favorable market conditions. The second finding highlighted a common denominator among all companies, emphasizing the importance of a strong relationship with the bank, particularly during economic downturns, as the bank's access to liquidity and flexible payment plans became crucial. The third finding demonstrated that despite companies' awareness of risk management, the concept of financial stress was interpreted differently among them, indicating its subjective nature. However, it was observed that companies are flexible in their financing choices and adapt to market conditions during economically challenging times.

This dissertation consists of three papers. In the first paper, I study firms' capital raising decisions in a two-stage signaling game. In the model, firms can issue debt or equity to finance sequentially arriving investment projects. Management is assumed to have an initial information advantage over investors. However, when a firm's decision in the first stage can change investors' beliefs and, consequently, impact the security issuance in the second stage, its optimal choice differs significantly from the strict debt-equity preference in a comparable one-stage model. In equilibrium, a dynamic pecking order arises, suggesting that the information friction can solely explain various aspects of observed corporate financing behavior. The second paper is coauthored with Hans Haller. In this paper, we model how different wealth constraints among investors affect an entrepreneur's way of raising capital, his share of project NPV, and his ownership of the new firm. Combining cooperative and noncooperative approaches, we develop and analyze a bargaining framework and demonstrate cases in which a fair division cannot be achieved when sharing of cost and sharing of return are jointly considered. Our results cover conditions on how the entrepreneur can strategically achieve larger net wealth accumulation, and when he can obtain control of the firm. We further discuss the entrepreneur's preferences on the firm's ownership dispersion level under public financing. The third paper argues that although innovation is costlier than imitation, the incumbent firm is endowed with an advantage of enhancing its product ahead of potential competitors. In a model that connects consumers' utility with firms' production, I show that the incumbent's product enhancement decision can foster the creation of a better product, improve consumers' utility, and deter entrance from competitors. The pace of creative activities is determined by the incumbent's potential of improving its product quality and the nature of product differentiation in the industry. Thus, creative destruction may not manifest itself as new firms replacing the incumbent, but as the incumbent constantly renovating its product. / Doctor of Philosophy / This dissertation consists of three papers. In the first paper I study the adverse selection problem faced by firms in a dynamic information environment, the difference between incentives provided by debt and equity securities, and how different contracts and model settings affect the equilibrium outcome, investment efficiency, and social welfare. The premise of the first paper is that dynamic elements of information asymmetry are key to better understanding how firms raise capital. This study aims to provide a more complete description and improve our understanding of the role of information in capital markets and how asymmetric information might interact with other market frictions. In the second paper I study the origin of the firm and the bargaining problem between entrepreneurs and investors. This second paper intends to provide one possible answer for the question why firms do exist. The main point in the paper is that even when we abstract away from standard frictions like adverse selection or moral hazard, an entrepreneur still has to bargain with investors to raise the required amount of capital. The firm has to be established to enforce the bargaining outcome, which takes the form of an ownership contract, because there is a time gap between conducting the investment and when the proceed can be realized. Another purpose of this second study is to investigate fairness instead of efficiency. Finally, in the third paper, I address the question how and when an incumbent monopolist can deter entry by means of investment in product quality enhancement. In some industries, creative destruction can be frequently observed: Incumbent firms are replaced by new firms that offer slightly different but better products. On the other hand, in a number of industries incumbent firms are at the forefront of innovation and stay ahead of potential entrants. I consider a model that allows for the latter fact combined with another frequent fact: that potential entrants more or less copy the incumbent's prior product, regardless of existence and enforcement of intellectual property rights. This third paper offers predictions on product innovation and market failure across firms and industries.

No description available.