Hedgeing and the use of derivatives: A study of US NOn-financial Companies
This paper provides empirical evidence on determinants of corporate derivatives usage for hedging purpose by US Fortune 100 Companies. Logit regression model is used to test whether the relationships between financial characteristics and the likelihood of using derivatives are cons...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2006
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| Online Access: | https://eprints.nottingham.ac.uk/20859/ |
| _version_ | 1848792145862852608 |
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| author | Zhong, Yina |
| author_facet | Zhong, Yina |
| author_sort | Zhong, Yina |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper provides empirical evidence on determinants of corporate derivatives usage for hedging purpose by US Fortune 100 Companies. Logit regression model is used to test whether the relationships between financial characteristics and the likelihood of using derivatives are consistent with the hedging hypotheses. Data about corporate derivative activities are obtained from companies 2005 annual reports. Based on the statistical results, there is no significant difference on the financial characteristics between those use derivatives for hedging and those do not. Also, the evidence is consistent with respect to the substitutes for hedging with derivatives. Finally, other evidence suggests that the expected cost of financial distress is one of the main reasons on firm's decision to use derivatives. |
| first_indexed | 2025-11-14T18:39:45Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-20859 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:39:45Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-208592018-04-25T22:54:57Z https://eprints.nottingham.ac.uk/20859/ Hedgeing and the use of derivatives: A study of US NOn-financial Companies Zhong, Yina This paper provides empirical evidence on determinants of corporate derivatives usage for hedging purpose by US Fortune 100 Companies. Logit regression model is used to test whether the relationships between financial characteristics and the likelihood of using derivatives are consistent with the hedging hypotheses. Data about corporate derivative activities are obtained from companies 2005 annual reports. Based on the statistical results, there is no significant difference on the financial characteristics between those use derivatives for hedging and those do not. Also, the evidence is consistent with respect to the substitutes for hedging with derivatives. Finally, other evidence suggests that the expected cost of financial distress is one of the main reasons on firm's decision to use derivatives. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20859/1/06MAlixyz24.pdf Zhong, Yina (2006) Hedgeing and the use of derivatives: A study of US NOn-financial Companies. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Zhong, Yina Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title | Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title_full | Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title_fullStr | Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title_full_unstemmed | Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title_short | Hedgeing and the use of derivatives: A study of US NOn-financial Companies |
| title_sort | hedgeing and the use of derivatives: a study of us non-financial companies |
| url | https://eprints.nottingham.ac.uk/20859/ |