<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>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:liu-58737 |
| Date | January 2010 |
| Creators | Lundgren, Jacob, Haraldsson, Tom |
| Publisher | Linköping University, Linköping University, Linköping University, Instutionen för ekonomisk och industriell utveckling (IEI) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, text |
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