The Determinants of Corporate Hedging with Derivatives in UK Non-Financial Companies
This study empirically investigates the determinants of corporate hedging with derivatives in UK non-financial companies. Based on previous researches and evidences, this study examines seven potential determinants on the decision of firms undertaking hedging activities, which contains financial dis...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2019
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| Online Access: | https://eprints.nottingham.ac.uk/58032/ |
| _version_ | 1848799516274196480 |
|---|---|
| author | Yan, Shimeng |
| author_facet | Yan, Shimeng |
| author_sort | Yan, Shimeng |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study empirically investigates the determinants of corporate hedging with derivatives in UK non-financial companies. Based on previous researches and evidences, this study examines seven potential determinants on the decision of firms undertaking hedging activities, which contains financial distress cost, underinvestment, scale economies, foreign exposure, hedging substitutes, managerial risk aversion and tax incentives. Moreover, the sample of this study consists of 400 UK firms with different firm sizes and industries, and the hedging data are manually collected from corporate annual reports from fiscal year 2017 to 2018, while financial data are directly download from Bloomberg. Through adopting Mean difference test, Wilcoxon rank sum test, a combination of Univariate and Multivariate logit regressions and Robustness check, this study suggests that financial distress cost, scale economies and foreign exposure are positively related with the probability of corporate hedging, while there is a significantly negative relationship between corporate hedging decision and underinvestment or hedging substitutes in UK non-financial firms. |
| first_indexed | 2025-11-14T20:36:54Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-58032 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:36:54Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-580322022-12-02T14:40:22Z https://eprints.nottingham.ac.uk/58032/ The Determinants of Corporate Hedging with Derivatives in UK Non-Financial Companies Yan, Shimeng This study empirically investigates the determinants of corporate hedging with derivatives in UK non-financial companies. Based on previous researches and evidences, this study examines seven potential determinants on the decision of firms undertaking hedging activities, which contains financial distress cost, underinvestment, scale economies, foreign exposure, hedging substitutes, managerial risk aversion and tax incentives. Moreover, the sample of this study consists of 400 UK firms with different firm sizes and industries, and the hedging data are manually collected from corporate annual reports from fiscal year 2017 to 2018, while financial data are directly download from Bloomberg. Through adopting Mean difference test, Wilcoxon rank sum test, a combination of Univariate and Multivariate logit regressions and Robustness check, this study suggests that financial distress cost, scale economies and foreign exposure are positively related with the probability of corporate hedging, while there is a significantly negative relationship between corporate hedging decision and underinvestment or hedging substitutes in UK non-financial firms. 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/58032/1/4300846%20-%20N14031%20-%20the%20Determinants%20of%20Corporate%20Hedging%20with%20D.pdf Yan, Shimeng (2019) The Determinants of Corporate Hedging with Derivatives in UK Non-Financial Companies. [Dissertation (University of Nottingham only)] |
| spellingShingle | Yan, Shimeng The Determinants of Corporate Hedging with Derivatives in UK Non-Financial Companies |
| title | The Determinants of Corporate Hedging with Derivatives
in UK Non-Financial Companies |
| title_full | The Determinants of Corporate Hedging with Derivatives
in UK Non-Financial Companies |
| title_fullStr | The Determinants of Corporate Hedging with Derivatives
in UK Non-Financial Companies |
| title_full_unstemmed | The Determinants of Corporate Hedging with Derivatives
in UK Non-Financial Companies |
| title_short | The Determinants of Corporate Hedging with Derivatives
in UK Non-Financial Companies |
| title_sort | determinants of corporate hedging with derivatives
in uk non-financial companies |
| url | https://eprints.nottingham.ac.uk/58032/ |