“The use of Interest Rate Derivatives by non-financial Firms”
The topic of discussion is the use of Interest Rate Derivatives by non-financial firms in the UK. The data of the non-financial firms is gathered from the information available in the financial statements. The objective of the study was to analyse how firms use floating rate debts or fixed rate d...
| Main Author: | |
|---|---|
| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2015
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| Online Access: | https://eprints.nottingham.ac.uk/30148/ |
| _version_ | 1848793930692296704 |
|---|---|
| author | Honavar, Gaurav |
| author_facet | Honavar, Gaurav |
| author_sort | Honavar, Gaurav |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The topic of discussion is the use of Interest Rate Derivatives by non-financial firms in the
UK. The data of the non-financial firms is gathered from the information available in the
financial statements. The objective of the study was to analyse how firms use floating rate
debts or fixed rate debts to hedge their interest rate risk. It is found that bank debts for nonfinancial
firms is set on a floating rate, firms with higher cash holdings choose to have more
floating rate debt, firms with high leverage prefer to have fixed rate debts, firms manage the
volatility in their earnings before interest and tax (EBIT) using floating rate debts and firms
with credit ratings usually desire for a fixed rate debt. The findings for these independent
variables is found to be consistent with existing literature. However, tests for the effects of
firm size, short-term debt and long-term debts on the floating rate debt were futile since
they did not yield statistically significant results. |
| first_indexed | 2025-11-14T19:08:07Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-30148 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:08:07Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-301482017-10-19T14:53:43Z https://eprints.nottingham.ac.uk/30148/ “The use of Interest Rate Derivatives by non-financial Firms” Honavar, Gaurav The topic of discussion is the use of Interest Rate Derivatives by non-financial firms in the UK. The data of the non-financial firms is gathered from the information available in the financial statements. The objective of the study was to analyse how firms use floating rate debts or fixed rate debts to hedge their interest rate risk. It is found that bank debts for nonfinancial firms is set on a floating rate, firms with higher cash holdings choose to have more floating rate debt, firms with high leverage prefer to have fixed rate debts, firms manage the volatility in their earnings before interest and tax (EBIT) using floating rate debts and firms with credit ratings usually desire for a fixed rate debt. The findings for these independent variables is found to be consistent with existing literature. However, tests for the effects of firm size, short-term debt and long-term debts on the floating rate debt were futile since they did not yield statistically significant results. 2015-09-17 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30148/1/Dissertation-1.pdf Honavar, Gaurav (2015) “The use of Interest Rate Derivatives by non-financial Firms”. [Dissertation (University of Nottingham only)] |
| spellingShingle | Honavar, Gaurav “The use of Interest Rate Derivatives by non-financial Firms” |
| title | “The use of Interest Rate Derivatives by non-financial
Firms” |
| title_full | “The use of Interest Rate Derivatives by non-financial
Firms” |
| title_fullStr | “The use of Interest Rate Derivatives by non-financial
Firms” |
| title_full_unstemmed | “The use of Interest Rate Derivatives by non-financial
Firms” |
| title_short | “The use of Interest Rate Derivatives by non-financial
Firms” |
| title_sort | “the use of interest rate derivatives by non-financial
firms” |
| url | https://eprints.nottingham.ac.uk/30148/ |