The DOI matches its Crossref record; 17 of the 17 references it cites were found in a registry or an index.
Evidence on Corporate Hedging Policy
Abstract
This paper provides empirical evidence on the determinants of corporate hedging decisions. The paper examines the evidence in light of currently mandated financial reporting requirements and, in particular, the constraints placed on anticipatory hedging. Data on hedging are obtained from 1992 annual reports for a sample of 3, 022 firms. Out of the 771 firms classified as hedgers, 543 firms disclose information in their annual reports on their hedging activities; the remaining 228 firms report use of derivatives but no information on hedging activities. Based on the evidence, I draw the following conclusions with respect to the models of hedging: evidence is inconsistent with financial distress cost models; evidence is mixed with respect to contracting cost, capital market imperfections, and tax-based models; and evidence uniformly supports the hypothesis that hedging activities exhibit economies of scale.
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Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
Jensen, M. C., & Meckling, W. H. (1976) · Journal of Financial Economics · doi:10.1016/0304-405x(76)90026-x · Cited by 71,491
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
Determinants of corporate borrowing
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Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have
Myers, S., & Majluf, N. (1984) · doi:10.3386/w1396 · Cited by 6,745
The Determinants of Capital Structure Choice
TITMAN, S., & WESSELS, R. (1988) · The Journal of Finance · doi:10.1111/j.1540-6261.1988.tb02585.x · Cited by 6,112 · cited 2×
“They further note the approach proposed by Titman and Wessels (1988) is an example that tries to impose a simultaneous equations framework but encounters the unavoidable problems of such a methodology: “(I)f the structure they use is correct, the power of their estimates is increased, but if their…”
BackgroundThe investment opportunity set and corporate financing, dividend, and compensation policies
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The Determinants of Firms' Hedging Policies
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The Maturity Structure of Corporate Debt
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Cited by
Is cash negative debt? A hedging perspective on corporate financial policies
Acharya, V. V., Almeida, H., & Campello, M. (2007) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2007.04.001 · Cited by 893
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
Metadata
- Authors
- Mian, S. L.
- Venue
- The Journal of Financial and Quantitative Analysis
- Publisher
- JSTOR
- Published
- 1996-09
- Volume
- 31
- Issue
- 3
- Pages
- 419
- ISSN
- 0022-1090 (ISSN-L)
- OpenAlex
- W2151937842
- Cited by
- 688
- References
- 17
- FWCI
- 86.28
- 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).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
