Industry effects and micro firms' capital structure determinants empirical evidence from Swedish data
by Darush Yazdanfar, Linda Odlund
International Journal of Business and Globalisation (IJBG), Vol. 5, No. 4, 2010

Abstract: This paper empirically examines the relevance of the pecking order theory to explain the capital structure determinants of Swedish small- and medium-sized firms (SMEs) within different industries. The study is based on multiple regression models and employs panel data for 10,905 Swedish micro firms from the financial year 2007. The models include the main capital structure determinants identified in the capital structure literature. Generally, the empirical findings show that size, tangibility and profitability are important determinants of both the long- and short-term debt (STD) of micro firms within all industry sectors. The effect of age and tangibility on long- and STD is unstable and shifting, and depends to a large extent on industry affiliation. The findings indicate that the pecking order theory appears to be relevant to explain the capital structure of Swedish micro firms.

Online publication date: Thu, 30-Sep-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email