The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms
This paper uses multiple linear models to examine the impact of the credit rating on the capital structure of Large-cap and Small-cap companies in the UK. The company were select from the FTSE 100 Index and FTSE Small-cap Index respectively, and data collected from 2012 to 2018. The author studies t...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/58110/ |
| _version_ | 1848799522650587136 |
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| author | Zhou, Weiwei |
| author_facet | Zhou, Weiwei |
| author_sort | Zhou, Weiwei |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper uses multiple linear models to examine the impact of the credit rating on the capital structure of Large-cap and Small-cap companies in the UK. The company were select from the FTSE 100 Index and FTSE Small-cap Index respectively, and data collected from 2012 to 2018. The author studies the impact of credit rating in three aspects by establishing three hypotheses:
1) The significance of credit rating.
2) The relationship between credit rating level and company leverage level.
3) How will the company's capital structure change when credit rating close to changes?
Regression results show that
1) Credit rating can promote companies to obtain more capital financing.
2) The higher the credit rating level, the lower the company's debt level.
3) When the credit rating is close to change, the company tends to reduce its debt.
The conclusion of this paper is consistent with that of other research literature. The author believes that credit rating has a significant impact on the capital structure of a company, whether it is a Large-cap company or a Small-cap company, credit rating should be taken as an essential factor when considering the capital structure. |
| first_indexed | 2025-11-14T20:37:00Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-58110 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:37:00Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-581102022-12-02T15:58:42Z https://eprints.nottingham.ac.uk/58110/ The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms Zhou, Weiwei This paper uses multiple linear models to examine the impact of the credit rating on the capital structure of Large-cap and Small-cap companies in the UK. The company were select from the FTSE 100 Index and FTSE Small-cap Index respectively, and data collected from 2012 to 2018. The author studies the impact of credit rating in three aspects by establishing three hypotheses: 1) The significance of credit rating. 2) The relationship between credit rating level and company leverage level. 3) How will the company's capital structure change when credit rating close to changes? Regression results show that 1) Credit rating can promote companies to obtain more capital financing. 2) The higher the credit rating level, the lower the company's debt level. 3) When the credit rating is close to change, the company tends to reduce its debt. The conclusion of this paper is consistent with that of other research literature. The author believes that credit rating has a significant impact on the capital structure of a company, whether it is a Large-cap company or a Small-cap company, credit rating should be taken as an essential factor when considering the capital structure. 2019-09-04 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/58110/1/Weiwei%20Zhou%2C%20Dissertation.pdf Zhou, Weiwei (2019) The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms. [Dissertation (University of Nottingham only)] Capital Structure Credit Rating |
| spellingShingle | Capital Structure Credit Rating Zhou, Weiwei The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title | The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title_full | The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title_fullStr | The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title_full_unstemmed | The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title_short | The Impact of the Credit Rating on Capital Structure in UK Large-cap and Small-cap Firms |
| title_sort | impact of the credit rating on capital structure in uk large-cap and small-cap firms |
| topic | Capital Structure Credit Rating |
| url | https://eprints.nottingham.ac.uk/58110/ |