We have examined the capital structure of the Swedish dairy farm industry and the driving forces behind this capital structure. This industry has undergone some major changes during modern time.
These changes constitutes mainly of the number of farms and technological development. This, in combination with reported low profitability in the industry, has sparked a high media coverage about the survivability of the agricultural industry due to its important social function.
The survivability of a business can be seen in its capital structure since that contains long term debt that can force a firm to become bankrupt and also the equity that contain retained earnings that can help a company weathering periods of low profitability.
Source: Umeå University
Authors: Bergmark, Sten | Dahlberg, Emil