Do Firms Use Derivatives to Reducetheir Dependence on External Capital Markets?
dc.contributor.author | Adam, Tim René | |
dc.date.accessioned | 2017-06-17T01:09:43Z | |
dc.date.available | 2017-06-17T01:09:43Z | |
dc.date.created | 2009-07-23 | |
dc.date.issued | 2002-01-01 | |
dc.identifier.uri | http://edoc.hu-berlin.de/18452/10112 | |
dc.description.abstract | This 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.iso | eng | |
dc.publisher | Humboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät | |
dc.rights.uri | http://rightsstatements.org/vocab/InC/1.0/ | |
dc.subject | Financial risk management hedging | eng |
dc.subject | investments | eng |
dc.subject | financing policy | eng |
dc.subject | financial constraints | eng |
dc.subject | gold mining industry | eng |
dc.subject.ddc | 150 Psychologie | |
dc.title | Do Firms Use Derivatives to Reducetheir Dependence on External Capital Markets? | |
dc.type | article | |
dc.identifier.urn | urn:nbn:de:kobv:11-10099703 | |
dc.identifier.doi | http://dx.doi.org/10.18452/9460 | |
local.edoc.type-name | Zeitschriftenartikel | |
local.edoc.container-type | periodical | |
local.edoc.container-type-name | Zeitschrift | |
local.edoc.container-year | 2002 | |
dc.description.version | Peer Reviewed | |
dcterms.bibliographicCitation.doi | 10.2139/ssrn.147851 | |
dcterms.bibliographicCitation.journaltitle | Review of Finance | |
dcterms.bibliographicCitation.volume | 6 | |
dcterms.bibliographicCitation.pagestart | 163 | |
dcterms.bibliographicCitation.pageend | 187 | |
bua.department | Wirtschaftswissenschaftliche Fakultät |