Kapitalstruktur och Affärsrisk
Independent thesis Advanced level (degree of Magister)Student thesisAlternative title
Capital Structure and Business Risk (English)
During the past year it has been made possible to buy back a company’s outstanding stock. This is done in order to change the capital structure towards a situation with less equity. A change in capital structure means a change in the cost of capital for a company and by that a change in the value for the stockholder. This Master Thesis studies the relation between capital structure and business risk. Studying the debt to equity ratio in a company captures capital structure. Studying the volatility in return on assets over a certain time period captures business risk. The Master Thesis also includes a study of what factors have an impact on the business risk when looking at the day-to-day business. By conducting a study of the pulp and paper industry and its nine listed companies a picture is created of what factors have an impact on the relation between capital structure and business risk. The business risk is in a very high degree dependant on factors like economic development for the product, raw material prices, number of product groups and what segments the company penetrates. A positive relation between capital structure and business risk has been identified. The study also indicates that other factors than just the business risk should be hold responsible for a company’s capital structure.
Place, publisher, year, edition, pages
Ekonomiska institutionen , 2001. , 59 p.
Master Thesis in Business Administration (Magisteruppsats från Internationella ekonomprogrammet), 2001:24
Business and economics, Capital Structure, Business Risk, Debt to Equity, Buy-back, Ekdal
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-811OAI: oai:DiVA.org:liu-811DiVA: diva2:22981