Analysis of the Effectiveness of Interest Rate Swaps in Hedging Against Interest Rate Risk Faced by Publicly Traded Holding Companies under the Dodd-Frank Act
MetadataShow full item record
This project seeks to examine whether the enactment of the Dodd-Frank Act has impacted the ability of publicly traded holding companies to hedge against exposure to interest rate risk using interest rate swaps. Prior to the Dodd-Frank Act, swaps were a derivative instrument that weren't heavily regulated; thus, this project hopes to determine the impact of heavier regulation on interest rate swaps as means to hedge. A model is proposed, controlling for both macroeconomic-level variables and firm-level variables, as well as the explanatory variables used to evaluate Dodd-Frank's impact on using interest rate swaps as a hedging instrument. Variables included in the model were log of real GDP per capita, an economic policy uncertainty index, current ratio, operating income, current debt and capital lease obligation, long-term debt, Ohlson O-Score, average swap rate, and a Dodd-Frank dummy variable. Through regression analysis, it was found that interest rate swaps have a significant relationship with holding company exposure to interest rate risk, despite the presence of stricter regulation due to the Dodd-Frank Act.
Showing items related by title, author, creator and subject.
Analysis of Interest Group Theories In Reference to Case Study of Initiative and Referendum Based Hawaiian Interest Groups Ketola, Rob (1991)Analysis of interest group theory through the examination of their rise into the political arena. Concentration on hearing before the State of Hawaii's Committee on Judiciary, which involved an interest group or coalition ...
Ciesinski, Joseph (1990)This report is an evaluation of the interest rates charged to Chicago-based Community Development Corporations (CDCs). The paper looks at a variety of topics concerning CDC borrowing: (1) the types of mortgages CDCs are ...