The DOI matches its Crossref record; 15 of the 15 references it cites were found in a registry or an index.
On the Determinants of Corporate Hedging
Abstract
Finance theory indicates that hedging increases firm value by reducing expected taxes, expected costs of financial distress, or other agency costs. This paper provides evidence on these hypotheses using survey data on firm's use of forwards, futures, swaps, and options combined with COMPUTSTAT data on firm characteristics. Of 169 firms in the sample, 104 firms use hedging instruments in 1986. The data suggest that firms which hedge face more convex tax functions, have less coverage of fixed claims, are larger, have more growth options in their investment opportunity set, and employ fewer hedging substitutes.
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Citations
Cites
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
The investment opportunity set and corporate financing, dividend, and compensation policies
Smith, C. W., & Watts, R. L. (1992) · Journal of Financial Economics · doi:10.1016/0304-405x(92)90029-w · Cited by 3,589
Self-citationThe Determinants of Firms' Hedging Policies
Smith, C. W., & Stulz, R. M. (1985) · The Journal of Financial and Quantitative Analysis · doi:10.2307/2330757 · Cited by 3,255
Self-citationOptimal capital structure under corporate and personal taxation
DeAngelo, H., & Masulis, R. W. (1980) · Journal of Financial Economics · doi:10.1016/0304-405x(80)90019-7 · Cited by 2,902
Smith, C. W., & Warner, J. B. (1979) · Journal of Financial Economics · doi:10.1016/0304-405x(79)90011-4 · Cited by 2,894
Self-citationBANKRUPTCY COSTS: SOME EVIDENCE
Gruber, M. J., & Warner, J. B. (1977) · The Journal of Finance · doi:10.1111/j.1540-6261.1977.tb03274.x · Cited by 1,095
Stulz, R. M. (1984) · The Journal of Financial and Quantitative Analysis · doi:10.2307/2330894 · Cited by 938
Bankruptcy Costs: Some Evidence
Warner, J. B. (1977) · The Journal of Finance · doi:10.2307/2326766 · Cited by 865
Zimmerman, J. L. (1983) · Journal of Accounting and Economics · doi:10.1016/0165-4101(83)90008-3 · Cited by 814
On the Corporate Demand for Insurance
Mayers, D., & Smith, Jr. (1982) · The Journal of Business · doi:10.1086/296165 · Cited by 600
Cited by
The Foreign Exchange Exposure of Japanese Multinational Corporations
He, J., & Ng, L. K. (1998) · The Journal of Finance · doi:10.1111/0022-1082.295575 · Cited by 601
Does hedging affect firm value? Evidence from the US airline industry
Carter, D. A., Rogers, D. A., & Simkins, B. J. (2006) · Financial Management · doi:10.1111/j.1755-053x.2006.tb00131.x · Cited by 389
Empirical Evidence on the Corporate Use of Derivatives
Berkman, H., & Bradbury, M. E. (1996) · Financial Management · doi:10.2307/3665985 · Cited by 300
Metadata
- Authors
- NANCE, D. R., SMITH, C. W., & SMITHSON, C. W.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1993-03
- Volume
- 48
- Issue
- 1
- Pages
- 267-284
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2119520917
- Cited by
- 1,254
- References
- 15
- FWCI
- 57.50
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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