The impact of negative interest rates on a firm’s financing costs
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/19698 |
Resumo: | In this project we want to find out to what extent the adoption of negative interest rates (specifically the Deposit Facility Rate) by the European Central Bank has affected the financing costs of a non-financial firm, providing a real example. We compute two different interest rates – one contracted with the bank (theoretical) and one resulting from the balance sheet and income statement (practical), the former representing what the firm expects to pay over the loan, and the latter encompassing the indirect costs of borrowing – and compare them between periods. We set the break between periods on June 2014, when the European Central Bank cut its Deposit Facility Rate into negative grounds, and find that the contracted interest rate dropped, and the overall interest rate increased, with the increase being caused not only by an increase in risk exposure, but also by a generalized increase in taxes, commissions and fees. |
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The impact of negative interest rates on a firm’s financing costsNegative interest ratesFinancing costsPortuguese firmsMonetary policiesTaxas de juro negativasCustos de financiamentoEmpresas portuguesasPolítica monetáriaGestão financeiraTaxa de juroFinanciamentoCustos -- CostsTrabalho de projetoPortugalIn this project we want to find out to what extent the adoption of negative interest rates (specifically the Deposit Facility Rate) by the European Central Bank has affected the financing costs of a non-financial firm, providing a real example. We compute two different interest rates – one contracted with the bank (theoretical) and one resulting from the balance sheet and income statement (practical), the former representing what the firm expects to pay over the loan, and the latter encompassing the indirect costs of borrowing – and compare them between periods. We set the break between periods on June 2014, when the European Central Bank cut its Deposit Facility Rate into negative grounds, and find that the contracted interest rate dropped, and the overall interest rate increased, with the increase being caused not only by an increase in risk exposure, but also by a generalized increase in taxes, commissions and fees.Queremos com este projeto descobrir qual o impacto da política de taxas de juro negativas impostas pelo Banco Central Europeu (nomeadamente a taxa de Facilidade Permanente de Depósito) sobre os custos de financiamento numa empresa não financeira. Calculámos duas taxas de juro diferentes – a contratada ao banco (teórica), e uma resultante do balanço e demonstração de resultados (prática), a primeira representando o que a empresa espera pagar sobre o empréstimo, e a segunda que engloba os custos indiretos do financiamento – e comparámo-las entre períodos. A divisão entre períodos é feita em Junho de 2014, altura em que o Banco Central Europeu baixou a sua taxa de Facilidade Permanente de Depósito para valores negativos, concluímos que a taxa contratada desceu, e a taxa prática subiu, sendo esta subida causada não só pelo aumento da exposição ao risco, mas também pelo aumento generalizado de impostos, taxas e comissões.2020-10-22T00:00:00Z2019-10-23T00:00:00Z2019-10-232019-09info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/19698TID:202374890engPires, Luís Gonçalo Baptistainfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T18:00:12Zoai:repositorio.iscte-iul.pt:10071/19698Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:31:51.881363Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of negative interest rates on a firm’s financing costs |
title |
The impact of negative interest rates on a firm’s financing costs |
spellingShingle |
The impact of negative interest rates on a firm’s financing costs Pires, Luís Gonçalo Baptista Negative interest rates Financing costs Portuguese firms Monetary policies Taxas de juro negativas Custos de financiamento Empresas portuguesas Política monetária Gestão financeira Taxa de juro Financiamento Custos -- Costs Trabalho de projeto Portugal |
title_short |
The impact of negative interest rates on a firm’s financing costs |
title_full |
The impact of negative interest rates on a firm’s financing costs |
title_fullStr |
The impact of negative interest rates on a firm’s financing costs |
title_full_unstemmed |
The impact of negative interest rates on a firm’s financing costs |
title_sort |
The impact of negative interest rates on a firm’s financing costs |
author |
Pires, Luís Gonçalo Baptista |
author_facet |
Pires, Luís Gonçalo Baptista |
author_role |
author |
dc.contributor.author.fl_str_mv |
Pires, Luís Gonçalo Baptista |
dc.subject.por.fl_str_mv |
Negative interest rates Financing costs Portuguese firms Monetary policies Taxas de juro negativas Custos de financiamento Empresas portuguesas Política monetária Gestão financeira Taxa de juro Financiamento Custos -- Costs Trabalho de projeto Portugal |
topic |
Negative interest rates Financing costs Portuguese firms Monetary policies Taxas de juro negativas Custos de financiamento Empresas portuguesas Política monetária Gestão financeira Taxa de juro Financiamento Custos -- Costs Trabalho de projeto Portugal |
description |
In this project we want to find out to what extent the adoption of negative interest rates (specifically the Deposit Facility Rate) by the European Central Bank has affected the financing costs of a non-financial firm, providing a real example. We compute two different interest rates – one contracted with the bank (theoretical) and one resulting from the balance sheet and income statement (practical), the former representing what the firm expects to pay over the loan, and the latter encompassing the indirect costs of borrowing – and compare them between periods. We set the break between periods on June 2014, when the European Central Bank cut its Deposit Facility Rate into negative grounds, and find that the contracted interest rate dropped, and the overall interest rate increased, with the increase being caused not only by an increase in risk exposure, but also by a generalized increase in taxes, commissions and fees. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-10-23T00:00:00Z 2019-10-23 2019-09 2020-10-22T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/19698 TID:202374890 |
url |
http://hdl.handle.net/10071/19698 |
identifier_str_mv |
TID:202374890 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799134879637569536 |