The effect of COVID-19 on the capital structure of European companies

Loading...
Thumbnail Image

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis

Authors

Turkki, Tomas

Date

2021

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

41+6

Series

Abstract

This paper studies the effect of COVID-19 on European companies’ capital structure. A major focus of this study is to examine the effects of the pandemic on both listed and unlisted companies. Additionally, I examine the effect on nine industries. This paper finds that COVID-19 has had a statistically and economically significant effect on the capital structure of companies. Companies seem to have increased their leverage and long-term debt during the year 2020. Especially, the effect has been significant in private companies. The results of this study contrast with previous crises like the global financial crisis 2008-2009 and previous literature on the effects of economic uncertainty on capital structure.

Description

Thesis advisor

Kokkonen, Joni

Keywords

capital structure, COVID-19, corporate debt, financing decisions

Other note

Citation