Investigating the determinants of the decision to engage in a corporate hedging strategy
Data(s) |
01/01/2006
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Resumo |
This paper investigates the decision to engage in a comprehensive corporate hedging strategy for Australian listed companies. Specifically the pursuit of a comprehensive hedging strategy is gauged by jointly investigating the corporate use of foreign currency derivatives; interest rate derivatives; commodity derivatives and foreign debt. The results show that firm size, leverage, dividend yield and block holdings are incentive factors to the comprehensive hedging decision, while executive shares is a disincentive factor. Consistent with hedging theory, the significance of the leverage variables supports the financial distress cost hypothesis. Support is also found for the dividend decision is a substitute for corporate hedging. <br /><br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Buro vir Ekonomiese Ondersoek |
Relação |
http://dro.deakin.edu.au/eserv/DU:30008939/nguyen-investigatingthe-2006.pdf |
Palavras-Chave | #hedge #foreign currency #interest rates #derivatives |
Tipo |
Journal Article |