The Determinants of Corporate Hedging with Derivatives in UK Companies

Abstract: This paper attempts to examine the determinants of corporate hedging with derivatives in UK companies. Based on previous evidences, this paper demonstrates several potential determinants of corporate hedging, which are: Growth opportunities, Alternatives for hedging, Firm size, Leverage,...

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Main Author: ZHANG, CHENHAO
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Online Access:https://eprints.nottingham.ac.uk/45803/
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author ZHANG, CHENHAO
author_facet ZHANG, CHENHAO
author_sort ZHANG, CHENHAO
building Nottingham Research Data Repository
collection Online Access
description Abstract: This paper attempts to examine the determinants of corporate hedging with derivatives in UK companies. Based on previous evidences, this paper demonstrates several potential determinants of corporate hedging, which are: Growth opportunities, Alternatives for hedging, Firm size, Leverage, Tax and Foreign exposure. The sample contains 400 UK companies in different industries, and the data are collected from the annual reports from financial years of 2015 to 2016. By employing mean difference tests, logistic regressions and robustness checks, this paper suggests that liquidity, firm size, interest coverage and leverage are positively related to corporate hedging, while growth opportunities, dividend, profitability, debt maturity and foreign exposures are negatively related to corporate hedging with derivatives in UK companies.
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spelling nottingham-458032018-04-17T14:37:54Z https://eprints.nottingham.ac.uk/45803/ The Determinants of Corporate Hedging with Derivatives in UK Companies ZHANG, CHENHAO Abstract: This paper attempts to examine the determinants of corporate hedging with derivatives in UK companies. Based on previous evidences, this paper demonstrates several potential determinants of corporate hedging, which are: Growth opportunities, Alternatives for hedging, Firm size, Leverage, Tax and Foreign exposure. The sample contains 400 UK companies in different industries, and the data are collected from the annual reports from financial years of 2015 to 2016. By employing mean difference tests, logistic regressions and robustness checks, this paper suggests that liquidity, firm size, interest coverage and leverage are positively related to corporate hedging, while growth opportunities, dividend, profitability, debt maturity and foreign exposures are negatively related to corporate hedging with derivatives in UK companies. 2017-09-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45803/1/Msc%20Dissertation%20Chenhao%20Zhang.pdf ZHANG, CHENHAO (2017) The Determinants of Corporate Hedging with Derivatives in UK Companies. [Dissertation (University of Nottingham only)]
spellingShingle ZHANG, CHENHAO
The Determinants of Corporate Hedging with Derivatives in UK Companies
title The Determinants of Corporate Hedging with Derivatives in UK Companies
title_full The Determinants of Corporate Hedging with Derivatives in UK Companies
title_fullStr The Determinants of Corporate Hedging with Derivatives in UK Companies
title_full_unstemmed The Determinants of Corporate Hedging with Derivatives in UK Companies
title_short The Determinants of Corporate Hedging with Derivatives in UK Companies
title_sort determinants of corporate hedging with derivatives in uk companies
url https://eprints.nottingham.ac.uk/45803/