The empirical analysis of Multinational Corporations using CCS to reduce the cost of issuing bonds and hedge risks.
| Autor: | Kuan-Ting Liu, 劉冠廷 |
|---|---|
| Rok vydání: | 2018 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 106 If you were the operator of multinational corporations, how would you raise your funds? Would you choose to borrow money from banks (Indirect finance) or issue corporate bonds (Direct finance)? If you choose the latter, then is there any financial instruments that can help you to distinguish issuing what kind of currency denominated bonds could have the effect of reducing the cost of debt and hedging risk? According to Zhang(2017), Cross Currency Swap has the aforementioned features. As a result of the interest rate environment varies from year to year, this study attempts to find out that, for individual companies, in which period issuing foreign currency denominated bonds could be cheaper than directly issuing domestic currency denominated bonds. Furthermore, this study also attempts to verify that whether there are companies in effect taking advantage of CCS, issuing foreign currency denominated bonds at the right time. The time range covered in this study is from 2010 to 2017. At first, this study distinguishes companies by country, then by industry, after that, picks American financial companies as the first research object. After looking into the representative companies of financial industry, we can have the outcome that 2012’s spreads is relatively low, 2015’s spreads is even lower, and until today, spreads maintains in low level. However, there isn’t enough evidence to prove that financial companies are taking advantage of CCS. Therefore, this study then changes the research object to the members of Dow Jones index and Berkshire Hathaway, owned by Warren Buffet, which are more likely to use derivatives to save costs and hedge risks, to verify that whether some of these objects have taken advantage of CCS at the right time. And obtains a positive answer in the end. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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