Title: Management's discussion of capital structure in real estate investments.

Publication: 2016-05-31

Authors: Malin Andersson och Rebecca Edling.

Supervisor: Eva Berggren.

Examiner: Titti Eliasson.

Problem definition: What discussion management of expansive real estate concerns haveabout capital structure of investments in real estate?

Purpose: The purpose is to explain how expansive real estate concerns works with their capital structure when they are doing investments in real estate. To explain this, we also needto understand how the capital structure is composed and things who may affect it. Furthermore, we also want to know if managements of expansive real estate concerns arereasoning about financial distress.Method: The study is a case study based on three interviews where respondents wereexpansive real estate concerns. It has a qualitative approach and has an abductive basis.

Conclusion: Size and ownership structure are the factors that have the greatest impact on themanagement's discussion about the capital structure of expansive real estate concerns. Furthermore, the debt or the profitability are not affecting the capital structure in the sameextent. The study also showed that financial stress is something that expansive real estateconcerns takes into consideration in its work with the capital structure.

Keywords:Capital structur, dept ratio, influencing factors and financial distress.