1 research outputs found
Kapitalstrukturen hos svenska private equity bolag : En kvantitativ studie om sambandet mellan kapitalstruktur och lönsamhet hos svenska PE-bolag under perioden 2014-2023.
No full textPurpose: The purpose of this study is to examine the relationship between capital structure, profitability, and growth in Swedish Private Equity-owned firms. The study aims to analyze whether profitability and growth explain variations in capital structure, measured through the debt ratio. Questions: Is there a statistically significant relationship between capital structure and profitability in Swedish Private Equity-owned firms?Is there a statistically significant relationship between capital structure and growth in Swedish Private Equity-owned firms? Theoretical background: The study is grounded in established capital structure theories, primarily Pecking Order Theory and Trade-Off Theory, which are used to analyze corporate financing decisions. These theories are complemented by prior research on Private Equity and the use of financial leverage as a value-creation mechanism. Methodology: A quantitative research approach is employed, using secondary data collected from annual reports of Swedish Private Equity-owned firms during the period 2014–2023. Capital structure is operationalized through the debt ratio, profitability is measured using Return on Assets (ROA), and growth is measured through revenue growth. The empirical analysis is conducted using both simple and multiple regression models. Results: The results indicate that neither profitability nor growth exhibits a statistically significant relationship with capital structure. While the multiple regression models demonstrate higher explanatory power than the simple regressions, profitability and growth remain statistically insignificant determinants of capital structure. Conclusion: The findings suggest that capital structure decisions in Private Equity-owned firms are primarily driven by ownership strategies and financing structures rather than by operational performance. Consequently, traditional capital structure theories appear to have limited explanatory power within a Private Equity context. Keywords: Capital structure, Private Equity, Leverage, Profitability, Growt
