This dissertation looks at the link between growth status and the cross-section of corporate capital structure. Initially, I propose initial growth status, an idea depending on a two-way sort on firms’ market-to-book and asset tangibility in early yrs after Initial public offering, not just reflects the cross-sectional variants in leverage ratios, but in addition unveils the time in-variant evolutions in capital structure. That’s, high (low) growth status firms generally have steady low (high) leverage over extended periods of time.
The access of capital and the high market growth has resulted in an increase in the quantity of companies going public in Sweden. Most companies go through with the initial public offering (IPO) process, but there has been an increase of companies