Equity Market Environment as a Capital Structure Determinant - Incorporating a systematic risk factor in the trade-off theory
Sammanfattning: In this thesis, we aim to increase the explanatory power of the trade-off theory by incorporating an element of the market-timing hypothesis. We apply an adjusted version of a generally accepted framework for testing the trade-off theory, with the inclusion of a variable designed to capture the equity market environment. The addition of an equity market variable as a proxy for systematic risk is found to improve the ability to explain the leverage ratios of public Swedish firms. The robustness of the results, however, is not satisfactory, which raises questions about the validity of our findings.
HÄR KAN DU HÄMTA UPPSATSEN I FULLTEXT. (följ länken till nästa sida)