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2002-01-01Zeitschriftenartikel DOI: 10.18452/9460
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.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
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.doihttp://dx.doi.org/10.18452/9460
local.edoc.type-nameZeitschriftenartikel
local.edoc.container-typeperiodical
local.edoc.container-type-nameZeitschrift
local.edoc.container-year2002
dc.description.versionPeer Reviewed
dcterms.bibliographicCitation.doi10.2139/ssrn.147851
dcterms.bibliographicCitation.journaltitleReview of Finance
dcterms.bibliographicCitation.volume6
dcterms.bibliographicCitation.pagestart163
dcterms.bibliographicCitation.pageend187
bua.departmentWirtschaftswissenschaftliche Fakultät

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