Corporate Hedging and Firm Value: Before and After the Financial Crisis

Risk management has been a rising topic of study in the economic literature, as the number of firms using risk management strategies has been increasing in recent decades. This research studies corporate hedging using financial derivative in particular and tests its effects on firm value empirically, before and after the recent financial crisis. Supporting evidence for the positive impact of hedging was found in research but only after certain observations are removed, which reduces the power of the empirical tests