Analysis of the Business Cycle and Capital Structure Relation in the US

Abstract

Using panel data models to estimate the impact of determinants on capital structure choice. Main purpose of this thesis is to give empirical analysis on the relationship between business cycle and companies’ leverage. We also take other potential macroeconomic and microeconomic determinants into consideration. Focusing on gaming and automotive companies listed in US market in period of 2007-2017, we eventually explore the results which can be supported by the trade-off and pecking order theories.