In the finance literature determinants of Capital structure have been widely debated. Previous studies have mainly focused on microeconomic determinants in countries outside Sweden and research on the Swedish market has been sparse. This study aims to analyze how microeconomic determinants such as profitability, firm size and tangible assets affect the capital structure and further how the determinants from the Swedish macroenvironment like inflation, tax rate and interest rate affect capital structure. The study considers previous theories on capital structures relevance and evaluates the Swedish firms support for the Irrelevance Theory, Pecking order and the Trade-off theory. In other words, by evaluating how the determinants affect the capital structure we were able to see connections between theory and how Swedish firms determine their financing decision.  Based on a review of the literature and theories, the determinants, the quantitative approach,  and collection method was decided. The data was collected over a 10-year period between  2010 - 2019 and amounted to 1116 firms and 44 632 observations. A multiple regression  method was performed where the dependent variable the debt ratio was split into short-term,  long-term, and total debt to get a better understanding of the results.  Analysis of the results demonstrated that Swedish firms' total debt ratio had a significant negative relation towards profitability. This indicates that Swedish firms choose to finance their operation with internal funds rather than with debt which supports the Pecking order Theory. However, the determinant growth show significant negative relationship to the  debt ratio which is in support for the Trade-off theory. The results imply Swedish firms conflicting support for theories on capital structure. Our results from a change in the  Swedish macroenvironment show that inflation causes firms long-term debt ratio to  decrease, which potentially demonstrates the fear of higher interest rates as inflation hits  and an unwillingness to finance with debt when the cost of financial distress increases.   Considering previous studies has shown contrasting results on the determinants effect on capital structure. We consider our findings to be in line with overall expectations and believe we add further knowledge which can be applied to the Swedish business environment.

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This thesis examines the link between mergers and acquisitions (M&As) and corporate financial leverage. The thesis proposes and tests various hypotheses regarding: (1) the relationship between the probability of firms undertaking M&As and corporate financial leverage; and (2) the changes in financial leverage prior to firms' decision to initiate M&As. The empirical evidence on the proposed hypotheses is based on a large sample of firms in the UK during the period 1996 and 2006. The empirical analysis presented in this study contributes to the large and growing body of literature on the interdependence of corporate financing and investment decisions. Specifically, this study contributes to the literature in two ways. First, the thesis investigates the link between firms leverage deviations (i.e. the deviations of firms observed leverage ratios from target leverage ratios) and the probability of undertaking M&As in the future. Building upon the earlier literature, it is argued that extreme leverage deviations lower the probability of undertaking M&As by impairing firms ability to raise capital to finance these deals. The study s empirical analyses suggest that extremely overleveraged firms have lower probability of undertaking M&As. Moreover, the link between extreme overleverage and the probability of undertaking M&As is weaker for diversification-increasing acquisitions (i.e. deals in which the acquirer and the target firm operate in different industries); for domestic acquisitions (i.e. deals in which the acquirer and the target firm are domiciled in the same country); and for focused (i.e. single-segment) firms undertaking acquisitions. Thus, the leverage deviation effect is not symmetric for all types of acquisitions and for all firms. Second, the thesis examines how the pre-acquisition changes in corporate financial leverage may be influenced by: (1) the extent to which firms deviate from their target leverage ratios; and (2) firms intentions to initiate M&As. Key empirical findings in this section suggest that firms that have higher leverage deviations adjust their leverage at a higher rate than those with lower deviations. More importantly, the empirical evidence suggests that firms that undertake M&As adjust their pre-acquisition leverage at a higher rate than those that do not. These findings suggest that, when making adjustments to corporate capital structure, managers tend to consider their firms leverage deviations and their future acquisition plans. Furthermore, the study s findings partly explain the differences in the speeds of financial leverage adjustments reported in the existing literature.

過去對公司資本結構的研究可分為兩大方向，一是對資本結構理論的探討，一是對影響公司資本結構因素的探討。我國於87年對投資所得改採兩稅合一制度後，兩稅合一對公司資本結構影響的探討成為研究的主流。本研究所要探討的問題有三。第一，兩稅合一後，公司的負債融資比例是否下降；第二，兩稅合一後，有效稅率、現金股給付率和獲利率與負債比率間的交互作用情況為何；第三，不同有效稅率或公司規模對負債比率的影響。 本研究的實證結果如下： （一）兩稅合一後，公司的負債比率會下降。 （二）兩稅合一前後，有效稅率與負債比率均呈正向關係；而且兩稅合一 後，有效稅率對負債比率的影響下降。 （三）兩稅合一前後，現金股利給付率與負債比率均呈反向關係；而且兩 稅合一後，現金股利給付率對負債比率的影響下降。 （四）兩稅合一前後，獲利率和負債比率均呈反向關係；而且兩稅合一 後，獲利率對負債比率的影響上升。 （五）兩稅合一之後，原有效稅率較高之公司的負債比率下降程度較多， 而原有效稅率較低之公司的負債比率下降程度較少。 （六）兩稅合一之後，原規模較大之公司的負債比率下降程度較少，而原 規模較小之公司的負債比率下降程度較多。 / The past researches on corporate financing structure can be divided into two lines, one in the corporate financing theories and the other in the determinants of corporate financing decisions. After the tax integration, the research whether the adoption of tax integration has a significant impact on corporate financing structure have become a mainstream. The study investigates three issues. The first is to investigate whether the debt ratio decreases after tax integration. The second is to investigate the effect of effective tax ratio, dividend payout ratio, profitability on the debt ratio. The third is to investigate whether the effect of tax regime change on the debt ratio is difference between effective tax ratio and firm size. The empirical results show follows: (1) After tax integration, the firm’s debt ratio decreased. (2) Effective tax ratio has positive relation with debt ratio no matter before or after tax integration. After tax integration, the degree of effective tax ratio effect on debt ratio declined. (3) Dividend payout ratio has negative relation with debt ratio no matter before or after tax integration. After tax integration, the degree of dividend payout ratio effect on debt ratio declined. (4) Profit ratio has negative relation with debt ratio no matter before or after tax integration. After tax integration, the degree of profit ratio effect on debt ratio increased. (5) After tax integration, the decline of debt ratio for company with higher debt ratio is more than the decline of debt ratio for company with lower debt ratio. (6) After tax integration, the decline of debt ratio for small firms is more than the decline of debt ratio for large firms.

<p><strong><p>Background:</p><p>what affects company value becomes apparent. The capital structure is the relation between</p><p>borrowed capital and equity in a company´s financing mix. What impact changes in capital structure</p><p>have on company value is a widely debated subject within the theory of finance. If a relationship</p><p>between capital structure and company value exists the implication is that an optimal capital</p><p>structure where company value is maximized also exists.</p>During extreme market conditions like the period during fall 2008 the discussion of<strong><p>Aim:</p><p>company value exists among selected stocks and companies listed on Stockholmsbörsens OMXS30.</p>The aim of the thesis is to study whether a certain relationship between capital structure and<strong><p>Implementation:</p><p>performed among chosen stocks and companies. The empirical results eventuating from this have</p><p>been analyzed from the view of elected relevant theory.</p>With aim to fulfill the purpose of the thesis regression analysis has been<strong><p>Completion and results:</p><p>between debt ratio and enterprise value (EV) can be established. During more turbulent periods the</p><p>results is more scattered. The results of this thesis is more evidence that the debt´s gear on equity is</p><p>what mainly impacts price movements on the stock market and affects value, where high debt will</p><p>pay off during favorable conditions and be costly during bad conditions, rather than a specific capital</p><p>structure. A certain relationship between capital structure and company value cannot be established.</p><p>The results of this thesis is also evidence pointing out the difficulties in measuring the relationship</p><p>between two variables where one is the daily quoted market price of equity, which is greatly affected</p><p>by market psychology et cetera, and the other, capital structure, is only to be measured during</p><p>interim- and annual reports.</p>We find that during normal market conditions a positive relationship<strong><p> </p></strong></strong></strong></strong></strong></p>

<p><strong>Syfte</strong> Syftet med uppsatsen är att ta undersöka huruvida det finns någon skillnad mellan skuldsättningsgraden inom produkt- och tjänstebranschen. Ett delsyfte till uppsatsen är att undersöka hur räntekostnaden ser ut och huruvida det finns signifikanta samband mellan de olika branschernas gällande ovanstående faktorer.</p><p><strong>Metod</strong> Undersökningen är en fallstudie med en abduktiv kvantitativ ansats. Empirin består av sekundärdata i form av årsredovisningar.</p><p><strong>Teori</strong> Teorin har utgått ifrån genrens klassiker i form av Modigliani & Millers två teorem, Pecking order teorin samt Trade-off teorin.  Även Hallgrens modell om risk har tillämpats.</p><p><strong>Empiri</strong> Data är insamlad från sex byggföretag samt från sex revisionsföretag. Skuldsättningsgrad, räntekostnader samt omsättning är granskad dels inom branschen och dels jämförande mellan branscherna. Empirin är testad genom signifikansanalyser.</p><p><strong>Resultat </strong></p><ul><li>Det finns inga signifikanta samband mellan bygg- och revisionsbranschens skuldsättning</li><li>Det finns inga signifikanta samband mellan bygg- och revisionsbranschens räntekostnad</li><li>Det finns inga signifikanta samband i byggbranschens skuldsättning</li><li>Det finns inga signifikanta samband i revisionsbranschens skuldsättning</li></ul> / <p><strong>Purpose</strong> The purpose of the assay is to inquire contingent difference between the debt ratio in the businesses of product and service. Another part of the purpose is to inquire what the interest cost looks like and if there are any significant relationships between the different businesses regarding above factors.</p><p><strong>Method</strong> The enquire is a case study with an abductive qualitative approach. The empiric consists of secondary data origin from annual reports.  <strong></strong></p><p><strong>Theory</strong> The theory of the assay emanates from the classics of the genre with the theorems of Modigliani & Millers, the pecking order theory and the trade-off theory. Another theory that as been used is Hallgrens model concerning risk.</p><p><strong>Empirics</strong> Data is collected from six building companies and from six revision companies. Debt ratio, interest cost and turnover are all parameters that are reviewed, partly in its own business, partly compared between the businesses. The empirics are tested through significant analysis.</p><p><strong>Result</strong></p><ul><li>There is no significant correlation concerning the debt ratio of the business of building and revision. </li><li>There is no significant correlation concerning the interest costs of the business of building and revision </li><li>There is no significant correlation concerning the debt ratio of the business of building.</li><li>There is no significant correlation concerning the debt ratio of the business of revision</li></ul>

Syfte Syftet med uppsatsen är att ta undersöka huruvida det finns någon skillnad mellan skuldsättningsgraden inom produkt- och tjänstebranschen. Ett delsyfte till uppsatsen är att undersöka hur räntekostnaden ser ut och huruvida det finns signifikanta samband mellan de olika branschernas gällande ovanstående faktorer. Metod Undersökningen är en fallstudie med en abduktiv kvantitativ ansats. Empirin består av sekundärdata i form av årsredovisningar. Teori Teorin har utgått ifrån genrens klassiker i form av Modigliani &amp; Millers två teorem, Pecking order teorin samt Trade-off teorin.  Även Hallgrens modell om risk har tillämpats. Empiri Data är insamlad från sex byggföretag samt från sex revisionsföretag. Skuldsättningsgrad, räntekostnader samt omsättning är granskad dels inom branschen och dels jämförande mellan branscherna. Empirin är testad genom signifikansanalyser. Resultat Det finns inga signifikanta samband mellan bygg- och revisionsbranschens skuldsättning Det finns inga signifikanta samband mellan bygg- och revisionsbranschens räntekostnad Det finns inga signifikanta samband i byggbranschens skuldsättning Det finns inga signifikanta samband i revisionsbranschens skuldsättning / Purpose The purpose of the assay is to inquire contingent difference between the debt ratio in the businesses of product and service. Another part of the purpose is to inquire what the interest cost looks like and if there are any significant relationships between the different businesses regarding above factors. Method The enquire is a case study with an abductive qualitative approach. The empiric consists of secondary data origin from annual reports.  Theory The theory of the assay emanates from the classics of the genre with the theorems of Modigliani &amp; Millers, the pecking order theory and the trade-off theory. Another theory that as been used is Hallgrens model concerning risk. Empirics Data is collected from six building companies and from six revision companies. Debt ratio, interest cost and turnover are all parameters that are reviewed, partly in its own business, partly compared between the businesses. The empirics are tested through significant analysis. Result There is no significant correlation concerning the debt ratio of the business of building and revision. There is no significant correlation concerning the interest costs of the business of building and revision There is no significant correlation concerning the debt ratio of the business of building. There is no significant correlation concerning the debt ratio of the business of revision

Background: In the current labor and business policy debate in Sweden there is a major focus on the need for it to become easier to set up small firms, and that it needs to become easier for small firms to hire staff. In order to set up and run a business, funding is required. Firms can choose to work more or less actively with this issue, but they all need to relate to it. There are basically two ways to fund a business, either through equity or through debt. The ratio between these two sources is called the firm’s capital structure. Purpose: To chart the capital structure of small firms in Sweden. Furthermore, the study aims to compare theories of corporate finance with how small businesses reason about, and work with finance in practice. Method: The thesis consists of both a quantitative and a qualitative study. Furthermore, these studies are compared with financial and entrepreneurial theories. Conclusion: The quantitative study shows that the differences between small firms and larger firms are small in terms of average debt ratio. However, the debt ratio varies a lot among individual companies. The qualitative study mainly shows that the pecking-order theory comport with the financing preferences of the companies included in the study. This is not true for the trade-off theory as the companies do not calculate their optimal capital structures. On the contrary, it is shown by the study that enterprisers do not always act in an economically rational way. Instead, the choices of capital structure within the firms are often affected by personal preferences. Keywords: Small firms, Financing, Capital structure, Debt ratio, Capital

Background: During extreme market conditions like the period during fall 2008 the discussion of what affects company value becomes apparent. The capital structure is the relation between borrowed capital and equity in a company´s financing mix. What impact changes in capital structure have on company value is a widely debated subject within the theory of finance. If a relationship between capital structure and company value exists the implication is that an optimal capital structure where company value is maximized also exists. Aim: The aim of the thesis is to study whether a certain relationship between capital structure and company value exists among selected stocks and companies listed on Stockholmsbörsens OMXS30. Implementation: With aim to fulfill the purpose of the thesis regression analysis has been performed among chosen stocks and companies. The empirical results eventuating from this have been analyzed from the view of elected relevant theory. Completion and results: We find that during normal market conditions a positive relationship between debt ratio and enterprise value (EV) can be established. During more turbulent periods the results is more scattered. The results of this thesis is more evidence that the debt´s gear on equity is what mainly impacts price movements on the stock market and affects value, where high debt will pay off during favorable conditions and be costly during bad conditions, rather than a specific capital structure. A certain relationship between capital structure and company value cannot be established. The results of this thesis is also evidence pointing out the difficulties in measuring the relationship between two variables where one is the daily quoted market price of equity, which is greatly affected by market psychology et cetera, and the other, capital structure, is only to be measured during interim- and annual reports.

This paper has studied the relationship between free cash flow &amp; debt with profitability of the Nordic Nasdaq large cap for the period of 2012-1017. Population of the study consists of 223 Nordic companies listed in Nasdaq. From this population a sample of 100 companies from different sectors have been chosen by random sampling, but the sample does not include financial institutions because the way these kinds of institutions are financing differ from companies in other sectors. Data has been collected from Eikon program which provides financial information about the listed companies around the world based on the company's audited financial statements. validity and reliability of the data have been checked to make sure the data are not wrong. In this study, free cash flow, debt to equity ratio &amp; debt ratio are considered as independent variables and profitability of the firm has been considered as dependent variable. In addition, diversity of the companies based on the countries they are established in is considered as dummy variable. Profitability of the firms have been measured by return on asset. The research philosophy is positivism and the research approach is deductive. Based on a quantitative research in which secondary data has been analyzed by running the Pearson correlation analysis and regression analysis. Result of the study revealed that; free cash flow has a positive effect on profitability of the Nordic Nasdaq large cap. In addition, the result of study showed that; debt ratio has negative effect on profitability of the targeted firms. But, the result showed that; the debt to equity ratio does not affect profitability of the firms. The result of running dummy variable revealed that; companies in Finland have 2,3 % lower return on assets compared with the companies located in Denmark. Also, the companies established in Sweden have a 2,3 % lower return on assets compared with Denmark.