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2002-01-01Zeitschriftenartikel DOI: 10.2139/ssrn.147851
Do Firms Use Derivatives to Reducetheir Dependence on External Capital Markets?
dc.contributor.authorAdam, Tim René
dc.date.accessioned2017-06-17T01:09:43Z
dc.date.available2017-06-17T01:09:43Z
dc.date.created2009-07-23
dc.date.issued2002-01-01
dc.identifier.urihttp://edoc.hu-berlin.de/18452/10112
dc.description.abstractThis study investigates if the use of derivatives by corporations is likely to affect their financing strategies. I find a strong positive relation between the minimum revenue guaranteed by hedging and investment expenditures. This result implies that hedging increases the likelihood that investments can be financed internally. I also find that firms tend to finance their investment expenditures externally rather than internally. If external capital is more costly than internal capital it would clearly be in a firm’s interest to reduce its dependence on external capital. Consistent with this result, I find that the median firm that does not hedge finances 100% of its investment expenditures externally, while the median firm that hedges finances only 86% of investments externally.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectFinancial risk management hedgingeng
dc.subjectinvestmentseng
dc.subjectfinancing policyeng
dc.subjectfinancial constraintseng
dc.subjectgold mining industryeng
dc.subject.ddc150 Psychologie
dc.titleDo Firms Use Derivatives to Reducetheir Dependence on External Capital Markets?
dc.typearticle
dc.identifier.urnurn:nbn:de:kobv:11-10099703
dc.identifier.doi10.2139/ssrn.147851
dc.identifier.doihttp://dx.doi.org/10.18452/9460
local.edoc.container-titleReview of Finance
local.edoc.type-nameZeitschriftenartikel
local.edoc.institutionWirtschaftswissenschaftliche Fakultät
local.edoc.container-typeperiodical
local.edoc.container-type-nameZeitschrift
local.edoc.container-urlhttp://www.revfin.org/
local.edoc.container-volume6
local.edoc.container-year2002
local.edoc.container-firstpage163
local.edoc.container-lastpage187
dc.description.versionPeer Reviewed

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