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Predicting new share issues: An empirical study on the relationship between key financial figures and the choice of issuing shares
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis analyzes certain key financial figures’ effect on a firm’s choice to issue shares in Sweden from 2004 to 2010. The relationship is estimated using variables indicating profitability, tangibility, size, growth, leverage and whether a firm is public or not. A comprehensive panel dataset from the Swedish Agency of Growth Policy Analysis and from PAR data is analyzed by OLS, logit and logit with fixed effects. This thesis contributes to the existing body of literature in capital structure by using a novel approach to the relationship between new share issues and firm performance. The thesis further complements previous findings by using the Swedish market as foundation and including both private and public firms. In line with previous findings, the results from the fixed effect logit model provide a negative effect for profitability and firm size and a positive effect for leverage on a firm’s choice to issue shares.

Place, publisher, year, edition, pages
2014. , 46 p.
Keyword [en]
Capital structure, new share issue, firm performance, logit, fixed effects
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-160921OAI: diva2:792574
Available from: 2016-11-02 Created: 2015-03-04 Last updated: 2016-11-02Bibliographically approved

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