Using a large sample of nonfinancial firms from 47 countries, we examine the effect of derivative use on firm risk and value. We control for endogeneity by matching users and nonusers on the basis of their propensity to use derivatives. We also use a new technique to estimate the effect of omitted variable bias on our inferences. We find strong evidence that the use of financial derivatives reduces both total risk and systematic risk. The effect of derivative use on firm value is positive but more sensitive to endogeneity and omitted variable concerns. However, using derivatives is associated with significantly higher value, abnormal returns, and larger profits during the economic downturn in 2001–2002, suggesting that firms are hedging dow...
Financial derivatives have been studied and scrutinized in depth since the financial crises in 2007-...
Abstract: Public discussion about corporate use of derivatives focuses on whether firms use derivati...
Empirical research has shown that derivatives have significant impact on firm value. However, the re...
Using a sample of 6,888 non-financial firms from 47 countries, we examine the effect of derivative u...
Using a large sample of nonfinancial firms from 47 countries, we examine the effect of derivative us...
Using a sample of 6,888 non-financial firms from 47 countries, we examine the effect of derivative u...
After the 2008 Global Financial Crisis, risk management has played an increasingly important role in...
The focus of this article is an investigation of the relationship between the use of financial deriv...
The company's rationale for using derivatives instruments will have an impact on the suitability of...
This paper examines the impact of hedging on the cost of equity capital. Using hand-collected data o...
This study uses hedging information collected from annual reports of over 400 non-financial companie...
Abstract Financial firms are carrying more risks than non-financial firms as they are operating with...
Derivatives have been used widely in the world over the last 30 years as an important risk managemen...
Abstract In today's globalized era all firms face an assortment of exchange rate risk in the due co...
This piece of work attempts to distinguish among various theories of corporate hedging with the help...
Financial derivatives have been studied and scrutinized in depth since the financial crises in 2007-...
Abstract: Public discussion about corporate use of derivatives focuses on whether firms use derivati...
Empirical research has shown that derivatives have significant impact on firm value. However, the re...
Using a sample of 6,888 non-financial firms from 47 countries, we examine the effect of derivative u...
Using a large sample of nonfinancial firms from 47 countries, we examine the effect of derivative us...
Using a sample of 6,888 non-financial firms from 47 countries, we examine the effect of derivative u...
After the 2008 Global Financial Crisis, risk management has played an increasingly important role in...
The focus of this article is an investigation of the relationship between the use of financial deriv...
The company's rationale for using derivatives instruments will have an impact on the suitability of...
This paper examines the impact of hedging on the cost of equity capital. Using hand-collected data o...
This study uses hedging information collected from annual reports of over 400 non-financial companie...
Abstract Financial firms are carrying more risks than non-financial firms as they are operating with...
Derivatives have been used widely in the world over the last 30 years as an important risk managemen...
Abstract In today's globalized era all firms face an assortment of exchange rate risk in the due co...
This piece of work attempts to distinguish among various theories of corporate hedging with the help...
Financial derivatives have been studied and scrutinized in depth since the financial crises in 2007-...
Abstract: Public discussion about corporate use of derivatives focuses on whether firms use derivati...
Empirical research has shown that derivatives have significant impact on firm value. However, the re...