Capital structure's influence on volatility on in times of financial distress : An investigation on capital structure as a volatility influencer before, during and after the European debt crisis on the Stockholm Stock Exchange

The financial crisisand the European debt crisis wreaked havoc on many European economies and stock markets. Previous studies have shown that crises are associated with high debt and linked with lower growth. Studies also suggest that politicians underestimate the risks associated with high debt during economic upturn and that economic crises are usually connected with high volatility. Volatility is used as a measurement of risk since high volatility indicates larger market uncertainty of the valuation of the underlying asset. Previous studies have shown that volatility can be a good indication of a firm’s riskiness. As volatility and capital structure both relate to risk and are influenced by market reactions, investigating the impact that capital structure has on volatility during times of global financial market distress could provide insight and be an important tool for investors. This thesis will investigate firms listed on the Stockholm stock exchange, divided into seven industries, in order to find the impact capital structure may have on volatility, before, during and in the aftermath of the recent European debt crisis (2006-2016). The study will use a quantitative research method, with an objectivistic and positivistic research philosophy as well as a deductive research approach. By using multiple regression models, theoretical relations surrounding volatility and capital structure will be contrasted to the results of the study.The results of the study finds that capital structure does not play a significant part inchanges in volatility for firms during any investigated period when testing for all firms simultaneously. However, the same claim cannot be made for when each industry is tested individually. Empirical evidence showed that capital structure is a influencer for changes in volatility for the consumer goods industry prior to and after the debt crisis and in the consumer goods service industry after the debt crisis. Investors are urged to not be concerned by large debt levels, as long as they invest in largefirms and choose the right sectors. The financial sector is seen as the least risky, with low volatility levels. Furthermore, the basic material sector, despite outward appearances, should be avoided as it presents recent periods of unusually large volatility levels

Structural Stability of Sandvik 3R60™ After 240 131 Hours Ageing and Creep Test at 700 °C

Sandvik 3R60™ is an AISI 316/316L type of stainless steel. In this paper, the structural stability of the material under long-term ageing or creep test has been studied. The material had been creep tested with a stress of 45 MPa at 700 °C. The predicted rupture time for the creep specimen was about 100,000 h; however, the specimen broke first after 240,131 h. The oxidation behavior and structural stability in both aged and creep-tested samples were studied using SEM/EDS, EBSD and ECCI techniques. Thin oxide layers near the sample surface are mainly spinel oxides and eskolaite (Cr2O3). Sigma phase, χ-phase, Eta phase, M23C6 and Cr2N have been observed in the matrix of the samples. In the crept sample, the amount of sigma phase has increased, so has Eta phase and χ-phase as well. Thermo-Calc evaluation can reasonably predict precipitation of sigma phase, Eta phase and M23C6, but not χ-phase and Cr2N phases. Creep crack initiation behavior has been studied. It is mainly noticed to start at surface oxide layer or coarse sigma particles at grain boundary or triple point. Additionally, it is also observed that the presence of a thin Cr2O3 layer between the oxide and matrix along with discontinuous sigma phase distribution at grain boundary that will reduce the risk for creep crack initiation. Further, the crack propagation behavior has also been discussed