Title: Impact of capital structure on micro firm productivity: empirical evidence from Swedish firm-level data
Authors: Darush Yazdanfar
Addresses: Department of Social Sciences, Mid Sweden University, Regementsgatan 25-27, Östersund 831 25, Sweden
Abstract: The paper examines the impact of key productivity determinants at the firm level using data on 24,257 Swedish micro firms, including approximately 194,000 observations for the 2007 to 2008 period. The regression model includes a firm-level measure of total factor productivity as the dependent variable and capital structure and other relevant control variables as independent variables. Analysis reveals that firm-level variables, such as lagged productivity, size, age, profitability, short-term debt ratio, and industry affiliation, significantly affect firm productivity. Agency cost theory seems applicable in partly explaining the relationship between capital structure and productivity.
Keywords: TFP; total-factor productivity; firm performance; agency cost theory; capital structure; Sweden; micro-enterprises; micro-businesses; micro-firms; micro-companies; key determinants; productivity determinants; regression models; firm-level measures; dependent variables; control variables; independent variables; firm-level variables; lagged productivity; firm size; company age; profitability; short-term debt ratios; industry affiliation; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship.
International Journal of Entrepreneurship and Small Business, 2012 Vol.17 No.4, pp.511 - 524
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 31 Oct 2012 *