The effect of COVID-19 on the capital structure of European companies
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Authors
Turkki, Tomas
Date
2021
Department
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, JoniKeywords
capital structure, COVID-19, corporate debt, financing decisions