Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
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
Capitalisation of Operating Lease and its impact on Financial Ratios
Jönköping University, Jönköping International Business School, JIBS, Accounting and Law. Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Jönköping University, Jönköping International Business School, JIBS, Accounting and Law.
2015 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Purpose - The purpose of this thesis is to simulate how capitalisation of operating lease will affect leverage and profitability ratios in listed Swedish companies; and observe if the use of operating lease has changed since the release of the first exposure draft in 2010.

Research design – The study is an ex ante research, simulating a predicted outcome of the new planned lease standard. A deductive and quantitative approach have been used for this comparative study. Secondary data have been collected from 55 Swedish companies listed on NASDAQ Stockholm OMX Large cap and processed with the constructive capitalisation model introduced by Imhoff et al. (1991) to simulate the capitalisation effect on financial ratios.

Findings - The result indicates that all financial ratios tested (debt/equity, equity/assets, profit margin, return on assets and return on equity) will have a statistically significant change on all tested years, 2010 – 2013, with a new lease standard. It also show a high correlation between companies’ ratios before and after capitalisation. No trends in the use of operating leasing can be observed from this study. 

Contribution – The conclusion of this study suggest that although there is an significant impact on all the companies financial ratios, there would be no big comparability problems, if implementing the new standard. This study supports the change in leasing standard since it would show a truer and fairer picture of companies’ use of leasing and increase the comparability among companies for potential investors.

Value – This study brings value and knowledge on the effect of capitalisation on operating leasing on listed Swedish companies. This information are valuable to Swedish companies, investors, other stakeholders and the organisations developing the new standard.

Place, publisher, year, edition, pages
2015. , 68 p.
Keyword [en]
operating lease
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-26503ISRN: JU-IHH-FÖA-2-20150055OAI: oai:DiVA.org:hj-26503DiVA: diva2:811250
Subject / course
IHH, Business Administration
Available from: 2015-06-15 Created: 2015-05-11 Last updated: 2015-06-15Bibliographically approved

Open Access in DiVA

fulltext(1127 kB)327 downloads
File information
File name FULLTEXT01.pdfFile size 1127 kBChecksum SHA-512
ab28c55e0f2f819f7485628e2d1066351eb883c9f7df8a99672d7ab2cf2a4891a7742f5f92af919a49f343c0c4f19b73c4db0e053e746b9cd9476828fff4a92a
Type fulltextMimetype application/pdf

By organisation
JIBS, Accounting and LawJIBS, Business Administration
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 327 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 594 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
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