The Impact of Corporate Capital Structure on Investments in Finnish Companies
Sarbassova, Elmira (2019)
Sarbassova, Elmira
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019062017424
https://urn.fi/URN:NBN:fi:amk-2019062017424
Tiivistelmä
The aim of the research was to investigate the impact of capital structure on investments within Finnish companies. It was essential to determine the influence of the nature of financing on the nature of investing. The correlation between different types and forms of both financing and investing was analyzed. The investigation covered a period of 2008-2017 and was based on the secondary data derived from companies’ official annual re-ports and financial statements and Nasdaq OMX database. The capital structure was considered based on two components: the book value of total debt in terms of book and market values of equity, and similarly, the current and non-current debt. Regarding the investing, in total five forms of investments, as the dependent variables, were analyzed.
Secondary data was used for the analysis through the SPSS software, which provided an opportunity to derive descriptive, correlation and OLS regression analyses. The descriptive statistics provided an overview of the data, while the correlation analysis showed the degree of association between variables. The regression analysis, in turn, demonstrated the effect of multiple independent variables on one dependent variable. The research methods were selected to prove the research hypotheses.
The empirical findings showed that the nature of financing has an influence on the nature of investing. To be more precise, the total current debt was correlated with fixed, current, non-current, tangible, and intangible investments in a different manner. Non-current debt also demonstrated the relationship with fixed and intangible assets. Meanwhile, the performance and control variables were also strongly associated with tangible and intangible investments. The outcomes revealed that companies perform diverse investment decisions, depending on the form of the financial leverage they carry.
Secondary data was used for the analysis through the SPSS software, which provided an opportunity to derive descriptive, correlation and OLS regression analyses. The descriptive statistics provided an overview of the data, while the correlation analysis showed the degree of association between variables. The regression analysis, in turn, demonstrated the effect of multiple independent variables on one dependent variable. The research methods were selected to prove the research hypotheses.
The empirical findings showed that the nature of financing has an influence on the nature of investing. To be more precise, the total current debt was correlated with fixed, current, non-current, tangible, and intangible investments in a different manner. Non-current debt also demonstrated the relationship with fixed and intangible assets. Meanwhile, the performance and control variables were also strongly associated with tangible and intangible investments. The outcomes revealed that companies perform diverse investment decisions, depending on the form of the financial leverage they carry.