Business cycles and capital structure : can firms strategically adapt their capital structure in order to gain superior profits?
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- Master Thesis 
This paper tests whether firm capital structure can be strategically adapted to the different phases of the business cycle. Relevant theoretical works are presented. Data sourced from SNF/NHH on all firms registered in “Brønnøysundregisteret” in the period 2000 untill 2013 is used together with regression analysis in order to find statistically significant relationships. Evidence is found for an optimal debt ratio. Furthermore this optimum changes with time opening up for the potential possibility of strategically adapting the debt ratio to the cycle in order to maximize firm performance.