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Financial Accounting and Reporting Dissertations

C/F/947. Dissertation. Examination of the effect of the recession and macroeconomic changes on capital structure

WORDS:
17150
ADD-ONS:
Financial data
DATE:
2010
PRICE:
179.99 GBP

This dissertation aims to examine whether the recession and macroeconomic changes in the UK have had an impact on the capital structure of listed companies. The objectives are to discuss the theories that explain capital structure of companies, to assess empirical evidence that suggest what determines the capital structure of listed companies, to discuss how previous studies approached the exploration of the relationship between macroeconomic factors and capital structure of firms, and to investigate whether recent changes in the macroeconomic environment caused by the global financial crisis affected capital structure of listed companies in the UK. These aims are achieved through an extensive review of literature, which focuses on topics like capital structure theories and capital structure changes. The methodology section is discussed, and data is collected through access to a variety of online databases like the Thomson Datastream and thorough analysis of the 72 largest companies in the FTSE 100 share price index. This section also discusses the main variables of the project, like size of the company and stock market index. The paper performs many analyses including correlation, economic time series and regression. The paper concludes with recommendations for future research. This paper includes a detailed excel file that includes all of the statistical data for this research.

 

KEYWORDS: Dissertation, recession, macroeconomic changes, capital structure, listed companies, global financial crisis, Thomson datastream, FTSE 100!,