Key Factors Relationship with Capital Structure A quantitative study of Swedish listed real estate companies

Sammanfattning: This paper describes the capital structure of listed real estate firms in Sweden between 2015 and 2021. The research question was formulated as “How does size, profitability, interest coverage ratio, growth, cost of debt and risk correlate with the capital structure of listed real estate companies in Sweden?”. By combining a literature study of previous research and a bivariate data analysis of 38 firms, the relationship between capital structure and cost of debt, size, profitability, interest coverage ratio, growth and risk was evaluated. The result suggests that size and interest coverage ratio have a weak negative correlation with firms’ debt-to-equity ratio, while the findings of the other factors were inconclusive. It is concluded that firms’ capital structure is a complex matter where firms act differently. Based on the result of this study, there are thus no significant determinants of capital structure.