Interest rate risk management with debt issues: Evidence from Europe

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Délèze , F & Korkeamäki , T 2018 , ' Interest rate risk management with debt issues: Evidence from Europe ' , Journal of financial stability , vol. 36 , no. June , pp. 1-11 . https://doi.org/10.1016/j.jfs.2018.01.003

Title: Interest rate risk management with debt issues: Evidence from Europe
Author: Délèze, Frédéric; Korkeamäki, Timo
Contributor: Hanken School of Economics, Finance, Helsinki
Belongs to series: Journal of financial stability
ISSN: 1572-3089
Abstract: In comparison to bank financing, public debt market may allow firms to more readily match maturity and risk structures between their assets and liabilities. We test whether new issuers on the European corporate bond markets experience a change in their interest rate sensitivity upon their bond issuance. We find that stock returns have become significantly less sensitive to interest rate fluctuations for firms that enter the publicly traded bond market. Our findings support the notion that firms manage their interest rate risk with new debt issues.
Date: 2018-06-01
Subject: 512 Business and Management
Interest rate risk
Euro
Risk management
KOTA2018
PREM2018_01
2 - Hybrid open access publication channel
1 - Self archived
1- Minst en av författarna har en utländsk affiliation
1- Publicerad utomlands
1- Minst en av författarna är affilierad vid ett företag
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