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How does the lowering of the share capitalrequirement affect the choice of corporate formwithin different sectors?
Jönköping University.
Jönköping University.
2021 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

In 2010 the Swedish government decided to decrease the share capital requirement from SEK 100 000to SEK 50 000. This reform was made to stimulate entrepreneurship and to increase self- employmentrates among immigrants and women. Another reform was made in 2020, decreasing the share capitalrequirement to SEK 25 000. This thesis aims at explaining the differences that these reforms have hadon the choice of corporate form across sectors. Moreover, this thesis strives to explain the effect thatorigin and gender of the proprietor have on the choice of corporate form across sectors by investigatinghow sectors with a large proportion of immigrants or women have responded to the 2010-reform. Usingdata from The Swedish Agency for Growth Policy Analysis on newly started companies organized bycorporate form and quarter, times-series regression is conducted to explore the effects of the 2010 and2020-reforms. The conclusion is that the 2010-reform had a significant effect on the share of limitedliability company, while the 2020-reform did not have a significant effect. Furthermore, the reformswere found to have increased the propensity to choose the limited liability company in sectors wherethe need for capital-assets is low, such as the service sectors. Moreover, sectors with a large proportionof immigrants or women were found to have had a weaker response to the 2010-reform. Finally, somesuggestions for future research on the subject is presented.

Place, publisher, year, edition, pages
2021. , p. 32
Keywords [en]
Company form, Limited liability company, Share capital requirement, Business policy reforms, Entrepreneurship
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hj:diva-53109ISRN: JU-IHH-NAA-1-20210223OAI: oai:DiVA.org:hj-53109DiVA, id: diva2:1565292
Presentation
2021-06-02, Jönköping, 14:15 (English)
Supervisors
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Available from: 2021-07-12 Created: 2021-06-13 Last updated: 2021-06-21Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf