Asian Journal of Research in Banking and Finance
Year : 2015, Volume : 5, Issue : 3
First page : ( 24) Last page : ( 40)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2015.00041.3

How factors affecting floating debt rate ratio correlated? Pearson and wilcoxon tests results

Mohammadkhani Hadi, Ph.D Student, Memar Ehsan Haji Hasan, MSc Student

Financial Management, University of Tehran, Tehran, Iran

Online published on 4 March, 2015.

Abstract

Using floating debt rate is common for short-term and the advantage of floating debt rate is that there is a chance to benefit from reduction in interest rate. The present study examines the determinants of floating rate debt ratio. Different factors may affect firm's decision on fixed floating debt mix. The primary focus of the majority of previous fixed/floating choice of debt studies was referred to the factors such as firm size, credit worthiness of firms, cash rate, leverage and the usage of interest rate swap as a measure of derivative. this paper test the correlation of factors that affect on floating rate with pearson and wilcoxon test.

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Keywords

Floating debt ratio, pearson, wilcoxon, Short term debt, correlation, interest rate swap.

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