An empirical test of agency cost reduction using interest rate swaps

This paper tests a model based on Wall's (Wall, L., 1989. Journal of Banking and Finance 13, 261–270) hypothesis of agency cost reduction using interest rate swaps. We find a significant positive relationship between the risk of the firm and the reduction of agency costs measured by the continu...

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Bibliographic Details
Published in:	Journal of banking & finance Vol. 24; no. 9; pp. 1419 - 1431
Main Authors:	Harper, Joel T, Wingender, John R
Format:	Journal Article
Language:	English
Published:	Amsterdam Elsevier B.V 01-09-2000 Elsevier Elsevier Sequoia S.A
Series:	Journal of Banking & Finance
Subjects:	Agency Agency cost Agency theory Banking Bonds Capital market Empirical study Financial economics Hypotheses Interest rate swaps Interest rates Securities markets Studies Swap arrangements Valuation United States > US G14 Agency cost D80 Empirical study Interest rate swaps G10
Online Access:	Get full text
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