An analysis of the reasons why UK companies use interest rate and currency swaps

Christine Helliar

    Research output: Contribution to journalArticle

    Abstract

    The swaps market has been the world's fastest growing financial market in the last few decades and the literature has sought reasons to explain this rapid growth. This study addresses this issue from a UK perspective and seeks to find out which UK organizations participate in the swaps market, why they choose to use it and the problems that they have encountered. The study consisted of a survey of the treasurers of 594 organizations in the UK. The most important reason why UK companies used swaps was to match their asset and liability cash flows and to stabilize their bottom line earnings. The results of this research will be of interest to both academics and to financial managers worldwide.

    Original languageEnglish
    Pages (from-to)1-45
    Number of pages45
    JournalJournal of Applied Accounting Research
    Volume7
    Issue number1
    DOIs
    Publication statusPublished - 1 Jan 2004

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