Finansiella mål i svenska fastighetsbolag : Undersöker användning, uppfyllelse och underliggande orsaker

The purpose of the study is to examine the use of financial targets in the Swedish real estate sector. Specifically, it aims to determine the most common financial targets, evaluate their achievement and explore the underlying motivations behind them. A potential connection between goal achievement and the market conditions is also evaluated. Previous studies have concluded that the real estate sector is a cyclical business, and companies use targets as a vital strategy. However, there remains a gap in understanding how financial targets are used in the real estate sector in Sweden. To evaluate the gap, the study takes on a mixed methods approach and divides the study into a quantitative and qualitative part. The quantitative method is employed for determining the usage and achievement of financial targets based on the companies that have or have had a listed share on Nasdaq Stockholm Main Market between 2015 and 2024. Annual reports from the 46 companies operating during the time period were collected and the financial targets were categorized into risk limitation targets, growth targets, profitability targets, and dividend targets. The qualitative method was established to provide insights into the underlying motivations and usage in practice. 21 semi-structured interviews were conducted with key figures within the real estate sector in Sweden, working as either CEO, CFO, or financial director. For evaluating and analyzing the result, the study takes on the theoretical frameworks of agency and signaling theory, institutional theory, and stakeholder theory. The study finds that the most reported financial targets in 2024 are risk limitations and dividend targets, and that the average achievement ofall financial targets has declined between 2015 and 2024. The study also finds that goal achievement only correlates slightly with the market conditions but does not find a clear pattern. A crucial aspect of using financial targets for real estate companies is to signal stability and transparency to external stakeholders. Underlying reasons for using financial targets include organizational alignment to create long-term value, promoting a goal-oriented culture to achieve company growth, and setting them toadapt to their stakeholders and regulatory requirements.