Dissertation Fact Sheet

Student Name/No: Suparna Chawla 1103866c Title of your research project: Degree Programme: MSc. International Corporate Finance & Banking Dates used by Study data: Financial years 2009, 2010 and 2011. Methodology: The research will be based on secondary data. To be considered as a sample for this research, the following three criteria should hold for a company. 1. The company should be functional in the telecommunication sector 2. The company, if operating in the UK, should be listed on the London Stock Exchange. A telecommunication company based in the United States should be listed on the New York Stock Exchange. 3. Irrespective of the fact that the company is either a multinational or a domestic one, it should be facing financial risk arising due to competition from across the globe. 10 such companies will constitute the sample for the UK telecommunication sector and 10 for the US telecommunication sector. These companies will then be categorized into classes constructed on the basis of their turnovers. The number of derivatives used by the companies in each class will then be determined. Further, the types of risks that these individual derivatives hedge a company against will be recorded. Finally, the risk management objectives achieved by using these hedging techniques will be studied. These findings will be compared for the US and the UK telecommunication industries Data: Annual reports of the sample companies will be analyzed to check whether or not the companies under consideration use derivatives to hedge themselves against risks. This information will be confirmed using secondary sources such as websites (Hoovers Online and Yahoo! Finance). Data Stream will be used for independent variables such as the amount of foreign sales and industry classification.