The Determinants of Interest Rate Derivatives Use: Evidence from UK Non-Financial Firms.
This study employs a large sample of 301 UK non-financial companies for 11 years from 2005 to 2015 to clarify the determinants of interest rate derivatives use with hedging data uniquely collected from firms’ annual reports. Results from logit regressions suggest that the majority of hypotheses unde...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36902/ |
| _version_ | 1848795356954886144 |
|---|---|
| author | Tran, Thanh Binh |
| author_facet | Tran, Thanh Binh |
| author_sort | Tran, Thanh Binh |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study employs a large sample of 301 UK non-financial companies for 11 years from 2005 to 2015 to clarify the determinants of interest rate derivatives use with hedging data uniquely collected from firms’ annual reports. Results from logit regressions suggest that the majority of hypotheses under optimal hedging theory are valid for firm’s decision of hedging by interest rate derivatives. In which, firms with larger size, higher expected costs of financial insolvency, lower liquidity are more likely to take derivative positions. Robustness test with the exclusion of other derivative users from IR derivative users and non-users group. The regression estimates show little difference to ones before robustness tests except tax losses dummy variable which turns out to be positively significant. Other tests for determinants of the extent of using derivatives by tobit and two-part models reach mixed results of the impacts of economies of scale on firm’s decision to extensively hedge with IR derivatives. |
| first_indexed | 2025-11-14T19:30:48Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36902 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:30:48Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-369022017-10-19T17:06:55Z https://eprints.nottingham.ac.uk/36902/ The Determinants of Interest Rate Derivatives Use: Evidence from UK Non-Financial Firms. Tran, Thanh Binh This study employs a large sample of 301 UK non-financial companies for 11 years from 2005 to 2015 to clarify the determinants of interest rate derivatives use with hedging data uniquely collected from firms’ annual reports. Results from logit regressions suggest that the majority of hypotheses under optimal hedging theory are valid for firm’s decision of hedging by interest rate derivatives. In which, firms with larger size, higher expected costs of financial insolvency, lower liquidity are more likely to take derivative positions. Robustness test with the exclusion of other derivative users from IR derivative users and non-users group. The regression estimates show little difference to ones before robustness tests except tax losses dummy variable which turns out to be positively significant. Other tests for determinants of the extent of using derivatives by tobit and two-part models reach mixed results of the impacts of economies of scale on firm’s decision to extensively hedge with IR derivatives. 2016-09-15 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36902/1/Dissertationbanfull.pdf Tran, Thanh Binh (2016) The Determinants of Interest Rate Derivatives Use: Evidence from UK Non-Financial Firms. [Dissertation (University of Nottingham only)] |
| spellingShingle | Tran, Thanh Binh The Determinants of Interest Rate Derivatives Use: Evidence from UK Non-Financial Firms. |
| title | The Determinants of Interest Rate Derivatives Use:
Evidence from UK Non-Financial Firms. |
| title_full | The Determinants of Interest Rate Derivatives Use:
Evidence from UK Non-Financial Firms. |
| title_fullStr | The Determinants of Interest Rate Derivatives Use:
Evidence from UK Non-Financial Firms. |
| title_full_unstemmed | The Determinants of Interest Rate Derivatives Use:
Evidence from UK Non-Financial Firms. |
| title_short | The Determinants of Interest Rate Derivatives Use:
Evidence from UK Non-Financial Firms. |
| title_sort | determinants of interest rate derivatives use:
evidence from uk non-financial firms. |
| url | https://eprints.nottingham.ac.uk/36902/ |