Räntabilitet och kapitalstruktur i svenska börsbolag
En analys av utvecklingen från 1990 till 2004
The aim of this thesis is to describe the development of profitability and capital structure in Swedish quoted companies during the period of 1990 to 2004. Further, the aim is to determine the relationship between profitability and leverage in order to conclude whether the choice of capital structure supports the pecking order theory or the trade-off theory of capital structure. The findings show that return on assets fluctuates between 3 and 11 percent and that return on equity fluctuates between 3 and 22 percent during the period. Further, the leverage and the cost of debt have decreased. This indicates lowered financial risk in Swedish quoted companies in the period between 1990 and 2004. In addition, the results show that leverage is used to a lesser extent to boost return on equity. It is also concluded that the relationship between profitability and leverage is negative. Thus, the result supports the pecking order theory rather than the trade-off theory in describing Swedish quoted companies? choice of capital structure.