Does ownership structure matter in explaining derivatives’ use policy in French listed firms

The purpose of this study is to investigate the effect of ownership structure on derivatives' use policy. Using data for 262 French non-financial listed firms, the results show that the two decisions of whether to use derivatives or not and the extent of derivatives use are not affected by the...

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Main Authors: Boubaker, S., Salma, M., Shaikh, Junaid
Format: Journal Article
Published: Inderscience Enterprise Ltd, UK 2010
Online Access:http://hdl.handle.net/20.500.11937/14828
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author Boubaker, S.
Salma, M.
Shaikh, Junaid
author_facet Boubaker, S.
Salma, M.
Shaikh, Junaid
author_sort Boubaker, S.
building Curtin Institutional Repository
collection Online Access
description The purpose of this study is to investigate the effect of ownership structure on derivatives' use policy. Using data for 262 French non-financial listed firms, the results show that the two decisions of whether to use derivatives or not and the extent of derivatives use are not affected by the same variables. CEO ownership has a negative effect on the decision to use derivatives, whereas CEO tenure length influences negatively the extent of derivative use. CEO age impacts positively both decisions, whereas firms that grant stock options to their CEOs do not rely too much on derivatives. However, the presence of outside blockholders seems not to affect the firms' hedging policy.
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format Journal Article
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institution Curtin University Malaysia
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last_indexed 2025-11-14T07:09:38Z
publishDate 2010
publisher Inderscience Enterprise Ltd, UK
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spelling curtin-20.500.11937-148282017-09-13T14:06:27Z Does ownership structure matter in explaining derivatives’ use policy in French listed firms Boubaker, S. Salma, M. Shaikh, Junaid The purpose of this study is to investigate the effect of ownership structure on derivatives' use policy. Using data for 262 French non-financial listed firms, the results show that the two decisions of whether to use derivatives or not and the extent of derivatives use are not affected by the same variables. CEO ownership has a negative effect on the decision to use derivatives, whereas CEO tenure length influences negatively the extent of derivative use. CEO age impacts positively both decisions, whereas firms that grant stock options to their CEOs do not rely too much on derivatives. However, the presence of outside blockholders seems not to affect the firms' hedging policy. 2010 Journal Article http://hdl.handle.net/20.500.11937/14828 10.1504/IJMFA.2010.033291 Inderscience Enterprise Ltd, UK restricted
spellingShingle Boubaker, S.
Salma, M.
Shaikh, Junaid
Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title_full Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title_fullStr Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title_full_unstemmed Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title_short Does ownership structure matter in explaining derivatives’ use policy in French listed firms
title_sort does ownership structure matter in explaining derivatives’ use policy in french listed firms
url http://hdl.handle.net/20.500.11937/14828