• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Determinants of Capital Structure in Listed Norwegian Firms

Nilssen, Cathrine Marie
Master thesis
Thumbnail
View/Open
Masteroppgave.PDF (1.398Mb)
URI
http://hdl.handle.net/11250/281628
Date
2014
Metadata
Show full item record
Collections
  • Master Thesis [4207]
Abstract
The main goal for most firms is to maximise firm value and the wealth of shareholders.

In order to achieve this goal, firms should use an optimal combination of equity and

debt that will result in a low weighted average cost of capital for the firm. It is therefore

necessary for firms to be aware of the factors that influence their capital structure decision.

Several empirical studies have attempted to explain what determines the choice of

capital structure in firms. However few have focused solely on Norwegian firms. Hence,

the primary objective of this study is to examine what determines the capital structure

in listed Norwegian firms.DataStream was used to obtain the data needed for the statistical analysis and previous studies were used to calculate the measures for the firm-specific characteristics. The

study was conducted over a period of 7 years, from 2007 to 2013, and there were a

total of 90 firms in the sample, resulting in 876 observations.

The results from the study indicate that tangibility is the most important firm

characteristic to consider when making capital structure decisions. Furthermore, the

results indicate a difference between the book value and market value of debt. Book

value of leverage finds support in the pecking order theory, while none of the theories

fully explains the observed capital structure in Norwegian firms. Based on the evidence

obtained from this research, firms should take these firm-specific factors into account

when making capital structure decisions.

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit