Erhvervsobligationer: Finansiering af små og mellemstore virksomheder

Casper Hummelgaard & Lasse Pedersen

Student thesis: Master thesis


Since the beginning of the financial crisis in 2007, most small and medium-sized enterprises have experienced an excessive reduction in their access to external financing, which consists mainly of bank loans. This thesis seeks to analyze the SME sector’s need for this type of financing as well as investigate whether an alternative to bank financing exists. The second chapter of the thesis deals with capital structure theory and why the traditional ways of looking at capital structure appear flawed when it comes to SMEs. It is concluded that while traditional capital structure theory’s focus on the optimal mix between debt and equity is applicable to larger listed corporations, this might not be the case for SMEs, which rely heavily on bank financing and have limited options when it comes to equity financing. The third chapter consists of a market analysis of SMEs in Denmark, Sweden, France and the USA with regards to e.g. SME-loans, interest spread and long-term and shortterm loans from 2007-2010. It is concluded that SME’s in Denmark seem to rely more heavily on short term loan financing as well as tend to be more sensitive to market volatility, which ultimately indicates that any measures to separate the SME sector from its reliance on the banking sector would be welcome. Subsequently this thesis seeks to investigate the possibility of expanding the market for corporate bonds in Denmark, especially for the SME sector. Chapter four deals with the pros and cons of corporate bonds as a financing method for SME’s. It is found that in spite of high costs and dependency on ratings, a more developed market for corporate bonds would mean easier access to financing for many Danish SMEs. Chapter five deals with the economic, structural and legal barriers to a more developed market for corporate bonds in Denmark as well as possible solutions to these. This chapter includes foreign experiences and how these could serve as an inspiration in developing the Danish corporate bond market. Chapter six contains the conclusion on the findings of this thesis and summarizes pros, cons and possible solutions to the underdeveloped corporate bond market in Denmark.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2012
Number of pages137