Cited By :3
KW - Bangladesh KW - Exchange rate movements KW - Firm value KW - Foreign currency derivative KW - Hedging effect ER - TY - JOUR TI - Does the use of foreign currency derivatives affect firms' market value? Evidence from Colombia AU - Gómez-González, J. AU - León Rincón, C. AU - Leiton Rodríguez, K. T2 - Emerging Markets Finance and Trade AB - This study tests the effects of risk management and hedging decisions on firms' market value. Using information on Colombian nonfinancial firms and the locale's most liquid derivatives market, we find that for a panel of eighty-one large Colombian corporations the growth rate of Tobin's q depends significantly on a firm's size and hedging. Our results suggest that an increase in hedging leads to a higher growth in the firms' value. © 2012 M.E. Sharpe, Inc. All rights reserved. DA - 2012/// PY - 2012 DO - 10.2753/REE1540-496X480403 DP - Scopus VL - 48 IS - 4 SP - 50 EP - 66 LA - English SN - 1540-496X ST - Does the use of foreign currency derivatives affect firms' market value? DB - Scopus L2 - http://www.scopus.com/record/display.uri?eid=2-s2.0-84866704854&origin=resultslist&sort=plf-f&src=s&st1=The+Use+of+Foreign+Currency+Derivatives+and+Firm+Market+Value&sid=5e15d95aca324f00e012bcdc9bf2814c&sot=b&sdt=b&sl=76&s=TITLE-ABS-KEY%28The+Use+of+Foreign+Currency+Derivatives+and+Firm+Market+Value%29&relpos=15&citeCnt=12&searchTerm= N1 -Cited By :12
KW - firm value KW - hedging KW - emerging market KW - Modigliani-Miller KW - risk management KW - Tobin's q ER - TY - JOUR TI - Is corporate hedging always beneficial? A theoretical and empirical analysis AU - Ahmed, H. AU - Fairchild, R. AU - Guney, Y. T2 - European Journal of Finance AB - This paper investigates, theoretically and empirically, the impact of corporate hedging activities on firm value/performance. In a perfect market, with self-less management, aiming to maximise shareholder wealth, it may be expected that hedging would improve firm performance and add value. Our major contribution in this paper is that we first demonstrate theoretically the conditions under which hedging can increase or decrease firm value. Our theoretic model demonstrates that the ambiguous relationship between hedging and firm value may be due to a subtle combination of economic (managerial self-interest, agency problems/moral hazard, managerial ability, managerial risk aversion) and behavioural factors (overconfidence). Our empirical analysis confirms the ambiguous effect of hedging on firm performance. Empirically, we focus on the use of derivatives in the corporate hedging of three types of financial risk (foreign currency, interest rate and commodity price risks), and examine the effect on value and performance of listed UK corporations during 2005–2017. We demonstrate that the positive or negative effects of the hedging strategies varies significantly across both the financial risk that is hedged and the type of derivatives contracts used in the hedging as well as the time period in consideration. © 2020, © 2020 Informa UK Limited, trading as Taylor & Francis Group. DA - 2020/// PY - 2020 DO - 10.1080/1351847X.2020.1785909 DP - Scopus SP - 1746 EP - 1780 LA - English SN - 1351-847X ST - Is corporate hedging always beneficial? DB - Scopus L1 - https://hull-repository.worktribe.com/preview/3515569/SSRN%20ValueHedging%20EJF.pdf L2 - http://www.scopus.com/record/display.uri?eid=2-s2.0-85087622596&origin=resultslist&sort=plf-f&src=s&st1=The+Use+of+Foreign+Currency+Derivatives+and+Firm+Market+Value&sid=5e15d95aca324f00e012bcdc9bf2814c&sot=b&sdt=b&sl=76&s=TITLE-ABS-KEY%28The+Use+of+Foreign+Currency+Derivatives+and+Firm+Market+Value%29&relpos=6&citeCnt=1&searchTerm= N1 -Cited By :1
KW - hedging KW - risk management KW - Financial derivatives KW - performance KW - UK firms KW - value ER - TY - GEN TI - Does Fuel Hedging Make Economic Sense? The Case of the Us Airline Industry AU - Carter, David AU - Rogers, Daniel A. AU - Simkins, Betty J. AB - This paper investigates the fuel hedging behavior of firms in the US airline industry during 1994-2000 to examine whether such hedging is a source of value for these companies. The investment climate in the airline industry conforms well to the theoretic framework of Froot, Scharfstein, and Stein (1993). Specifically, airline industry investment opportunities correlate positively with jet fuel costs, while higher fuel costs are consistent with lower cash flow. Given that jet fuel costs are hedgeable, airlines with a desire for expansion may find value in hedging future purchases of jet fuel. The results show that jet fuel hedging is positively related to airline firm value. The coefficients on hedging indicator variables in regression analysis suggest that the hedging premium constitutes approximately a 12-16% increase in firm value. We find that the positive relation between hedging and value increases in capital investment. This result is consistent with the assertion that the principal benefit of jet fuel hedging by airlines comes from reduction of underinvestment costs. CY - Rochester, NY DA - 2002/09/16/ PY - 2002 DO - 10.2139/ssrn.325402 DP - Social Science Research Network LA - en ST - Does Fuel Hedging Make Economic Sense? UR - https://papers.ssrn.com/abstract=325402 Y2 - 2022/10/18/16:47:52 L1 - https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID325402_code020912670.pdf?abstractid=325402&mirid=1 L2 - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=325402 KW - Airline industry KW - Hedging KW - Risk Management ER - TY - JOUR TI - The effects of derivatives on firm risk and value AU - Bartram, S.M. AU - Brown, G.W. AU - Conrad, J. T2 - Journal of Financial and Quantitative Analysis AB - Using a large sample of nonfinancial firms from 47 countries, we examine the effect of derivative use on firm risk and value. We control for endogeneity by matching users and nonusers on the basis of their propensity to use derivatives. We also use a new technique to estimate the effect of omitted variable bias on our inferences. We find strong evidence that the use of financial derivatives reduces both total risk and systematic risk. The effect of derivative use on firm value is positive but more sensitive to endogeneity and omitted variable concerns. However, using derivatives is associated with significantly higher value, abnormal returns, and larger profits during the economic downturn in 2001-2002, suggesting that firms are hedging downside risk. © Copyright Michael G. Foster School of Business, University of Washington 2011. DA - 2011/// PY - 2011 DO - 10.1017/S0022109011000275 DP - Scopus VL - 46 IS - 4 SP - 967 EP - 999 LA - English SN - 1756-6916 DB - Scopus L1 - https://eprints.lancs.ac.uk/id/eprint/45444/1/S0022109011000275a.pdf L2 - http://www.scopus.com/record/display.uri?eid=2-s2.0-80053077575&origin=resultslist&sort=plf-f N1 -Cited By :163
ER - TY - JOUR TI - Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers AU - Jin, Yanbo AU - Jorion, Philippe T2 - The Journal of Finance AB - This paper studies the hedging activities of 119 U.S. oil and gas producers from 1998 to 2001 and evaluates their effect on firm value. Theories of hedging based on market imperfections imply that hedging should increase the firm's market value (MV). To test this hypothesis, we collect detailed information on the extent of hedging and on the valuation of oil and gas reserves. We verify that hedging reduces the firm's stock price sensitivity to oil and gas prices. Contrary to previous studies, however, we find that hedging does not seem to affect MVs for this industry. DA - 2006/// PY - 2006 DP - JSTOR VL - 61 IS - 2 SP - 893 EP - 919 SN - 0022-1082 ST - Firm Value and Hedging UR - https://www.jstor.org/stable/3699361 Y2 - 2022/10/18/18:14:53 ER - TY - BLOG TI - ¿Qué factores marcan el comportamiento del dólar? | BBVA AU - García, Constansa T2 - BBVA NOTICIAS AB - El comportamiento de la divisa está marcado por factores que a veces se ignoran o se pasan por desapercibidos. Sin embargo, es bueno conocerlos y tenerlos en cuenta a la hora de pensar en hacer desde simples compras en esta moneda, hasta grandes operaciones. DA - 2017/09/28/ PY - 2017 LA - es ST - ¿Qué factores marcan el comportamiento del dólar? UR - https://www.bbva.com/es/factores-marcan-comportamiento-dolar/ Y2 - 2022/10/18/18:20:37 L2 - https://www.bbva.com/es/factores-marcan-comportamiento-dolar/ ER - TY - BOOK TI - Cost of Capital: Applications and Examples AU - Pratt, Shannon P. AU - Grabowski, Roger J. AB - Praise for Cost of Capital, Fourth Edition "This book is the most incisive and exhaustive treatment of this critical subject to date." —From the Foreword by Stephen P. Lamb, Esq., Partner, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and former vice chancellor, Delaware Court of Chancery "Cost of Capital, Fourth Edition treats both the theory and the practical applications from the view of corporate management and investors. It contains in-depth guidance to assist corporate executives and their staffs in estimating cost of capital like no other book does. This book will serve corporate practitioners as a comprehensive reference book on this challenging topic in these most challenging economic times." —Robert L. Parkinson Jr., Chairman and Chief Executive Office, Baxter International Inc., and former dean, School of Business Administration and Graduate School of Business, Loyola University of Chicago "Shannon Pratt and Roger Grabowski have consolidated information on both the theoretical framework and the practical applications needed by corporate executives and their staffs in estimating cost of capital in these ever-changing economic times. It provides guidance to assist corporate practitioners from the corporate management point of view. For example, the discussions on measuring debt capacity is especially timely in this changing credit market environment. The book serves corporate practitioners as a solid reference." —Franco Baseotto, Executive Vice President, Chief Financial Officer, and Treasurer, Foster Wheeler AG "When computing the cost of capital for a firm, it can be fairly said that for every rule, there are a hundred exceptions. Shannon Pratt and Roger Grabowski should be credited with not only defining the basic rules that govern the computation of the cost of capital, but also a road map to navigate through the hundreds of exceptions. This belongs in every practitioner's collection of must-have valuation books." —Aswath Damodaran, Professor, Stern School of Business, New York University "Pratt and Grabowski have done it again. Just when you thought they couldn't possibly do a better job, they did. Cost of Capital, Fourth Edition is a terrific resource. It is without a doubt the most comprehensive book on this subject today. What really distinguishes this book from other such texts is the fact that it is easy to read—no small feat given the exhaustive and detailed research and complicated subject matter. This book makes you think hard about all the alternative views out there and helps move the valuation profession forward." —James R. Hitchner, CPA/ABV/CFF, ASA, Managing Director, Financial Valuation Advisors; CEO, Valuation Products and Services; Editor in Chief, Financial Valuation and Litigation Expert; and President, Financial Consulting Group "The Fourth Edition of Cost of Capital continues to be a 'one-stop shop' for background and current thinking on the development and uses of rates of return on capital. While it will have an appeal for a wide variety of constituents, it should serve as required reading and as a reference volume for students of finance and practitioners of business valuation. Readers will continue to find the volume to be a solid foundation for continued debate and research on the topic for many years to come." —Anthony V. Aaron, Americas Leader, Quality and Risk Management, Ernst & Young Transaction Advisory Services DA - 2010/11/04/ PY - 2010 DP - Google Books SP - 794 LA - en PB - John Wiley & Sons SN - 978-0-470-88671-7 ST - Cost of Capital L2 - https://books.google.com.co/books?id=uKmiyDxLaM4C KW - Business & Economics / Accounting / General KW - Business & Economics / General ER - TY - GEN TI - The Underinvestment Problem and Corporate Derivatives Use AU - Gay, Gerald D. AU - Nam, Jouahn AB - We analyze the underinvestment problem as a determinant of corporate hedging policy. We find evidence of a positive relation between a firm?s derivatives use and its growth opportunities, as proxied by several alternative measures. For firms with enhanced investment opportunities, derivatives use is greater when they also have relatively low cash stocks. Firms whose investment expenditures are positively correlated with internal cash flows tend to have smaller derivatives positions which suggests potential natural hedges. Our findings support the argument that firms? derivatives use may partly be driven by the need to avoid potential underinvestment problems. CY - Rochester, NY DA - 1999/02/12/ PY - 1999 DP - Social Science Research Network LA - en UR - https://papers.ssrn.com/abstract=144202 Y2 - 2022/10/18/18:37:26 L2 - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=144202 KW - Gerald D. Gay KW - Jouahn Nam KW - SSRN KW - The Underinvestment Problem and Corporate Derivatives Use ER - TY - JOUR TI - Risk Management: Coordinating Corporate Investment and Financing Policies AU - Froot, Kenneth A. AU - Scharfstein, David S. AU - Stein, Jeremy C. T2 - The Journal of Finance AB - This paper develops a general framework for analyzing corporate risk management policies. We begin by observing that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities. We then argue that this simple observation has wide ranging implications for the design of risk management strategies. We delineate how these strategies should depend on such factors as shocks to investment and financing opportunities. We also discuss exchange rate hedging strategies for multinationals, as well as strategies involving "nonlinear" instruments like options. DA - 1993/// PY - 1993 DO - 10.2307/2329062 DP - JSTOR VL - 48 IS - 5 SP - 1629 EP - 1658 SN - 0022-1082 ST - Risk Management UR - https://www.jstor.org/stable/2329062 Y2 - 2022/10/18/18:38:18 L1 - https://www.nber.org/papers/w4084.pdf ER - TY - JOUR TI - Why Firms Use Currency Derivatives AU - Géczy, Christopher AU - Minton, Bernadette A. AU - Schrand, Catherine T2 - The Journal of Finance AB - We examine the use of currency derivatives in order to differentiate among existing theories of hedging behavior. Firms with greater growth opportunities and tighter financial constraints are more likely to use currency derivatives. This result suggests that firms might use derivatives to reduce cash flow variation that might otherwise preclude firms from investing in valuable growth opportunities. Firms with extensive foreign exchange-rate exposure and economies of scale in hedging activities are also more likely to use currency derivatives. Finally, the source of foreign exchange-rate exposure is an important factor in the choice among types of currency derivatives. DA - 1997/// PY - 1997 DO - 10.1111/j.1540-6261.1997.tb01112.x DP - Wiley Online Library VL - 52 IS - 4 SP - 1323 EP - 1354 LA - en SN - 1540-6261 UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.1997.tb01112.x Y2 - 2022/10/18/18:42:14 L1 - https://repository.upenn.edu/cgi/viewcontent.cgi?article=1102&context=accounting_papers L2 - https://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.1997.tb01112.x ER - TY - JOUR TI - La cobertura corporativa del riesgo de cambio en las empresas no financieras españolas AU - Azofra, Valentín AU - Esteban, José AB - El objeto del presente trabajo es estudiar los factores determinantes de la decisión de algunas empresas no financieras españolas de diseñar e implantar estrategias de cobertura del riesgo de cambio. Los factores que se analizan en este estudio son el nivel de exposición económica al riesgo de cambio de la empresa, sus problemas financieros y de agencia y la existencia de economías de escala informativas y transaccionales en el uso de derivados financieros para la cobertura del riesgo de cambio. Los resultados obtenidos muestran que la probabilidad de que las empresas diseñen e implanten estrategias de cobertura del riesgo de cambio fue mayor en los años más recientes, siendo las empresas más endeudadas y de mayor tamaño las que cubren en mayor medida el riesgo de cambio. DA - 2002/01/01/ PY - 2002 DP - ResearchGate L4 - https://www.researchgate.net/publication/5200902_La_cobertura_corporativa_del_riesgo_de_cambio_en_las_empresas_no_financieras_espanolas ER - TY - JOUR TI - The Cost of Capital, Corporation Finance and the Theory of Investment AU - Modigliani, Franco AU - Miller, Merton H. T2 - The American Economic Review DA - 1958/// PY - 1958 DP - JSTOR VL - 48 IS - 3 SP - 261 EP - 297 SN - 0002-8282 UR - https://www.jstor.org/stable/1809766 Y2 - 2022/10/18/22:31:11 ER - TY - JOUR TI - The Determinants of Firms' Hedging Policies AU - Smith, Clifford W. AU - Stulz, Rene M. T2 - The Journal of Financial and Quantitative Analysis AB - We develop a positive theory of the hedging behavior of value-maximizing corporations. We treat hedging by corporations simply as one part of the firm's financing decisions. We examine (1) taxes, (2) contracting costs, and (3) the impact of hedging policy on the firm's investment decisions as explanations of the observed wide diversity of hedging practices among large, widely-held corporations. Our theory provides answers to the questions: (1) why some firms hedge and others do not; (2) why firms hedge some risks but not others; and (3) why some firms hedge their accounting risk exposure while others hedge their economic value. DA - 1985/// PY - 1985 DO - 10.2307/2330757 DP - JSTOR VL - 20 IS - 4 SP - 391 EP - 405 SN - 0022-1090 UR - https://www.jstor.org/stable/2330757 Y2 - 2022/10/18/22:32:25 ER - TY - BOOK TI - Damodaran on Valuation: Security Analysis for Investment and Corporate Finance AU - Damodaran, Aswath AB - "In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today's critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today's valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face"--Resource description page. DA - 2006/// PY - 2006 DP - Google Books SP - 685 LA - en PB - J. Wiley SN - 978-1-119-20178-6 ST - Damodaran on Valuation L2 - https://books.google.com.co/books?id=KJK1DAEACAAJ ER - TY - ELEC TI - Damodaran Online: Home Page for Aswath Damodaran UR - https://pages.stern.nyu.edu/~adamodar/ Y2 - 2022/10/18/23:18:22 L2 - https://pages.stern.nyu.edu/~adamodar/ ER - TY - JOUR TI - Financial derivatives and firm value: What have we learned? AU - Bachiller, Patricia AU - Boubaker, Sabri AU - Mefteh-Wali, Salma T2 - Finance Research Letters AB - Despite an enormous amount of research on the relationship between financial hedging and firm performance, the literature provides so far no clear-cut findings on whether the use of derivatives results in higher firm valuation. Using a meta-analysis of 51 studies, this research explains whether the absence of a consensus is due to different country specificities and hedging types. The findings show that the use of foreign currency derivatives, alone or along with other types of derivatives, drives firm value positively. They also show that hedging presents an economic advantage for all firms, especially those from common law and developed countries. DA - 2021/03// PY - 2021 DO - 10.1016/j.frl.2020.101573 DP - DOI.org (Crossref) VL - 39 SP - 101573 J2 - Finance Research Letters LA - en SN - 15446123 ST - Financial derivatives and firm value UR - https://linkinghub.elsevier.com/retrieve/pii/S1544612320300945 Y2 - 2022/11/05/20:31:37 L1 - https://pdf.sciencedirectassets.com/273054/1-s2.0-S1544612321X00025/1-s2.0-S1544612320300945/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEA0aCXVzLWVhc3QtMSJGMEQCIEZCJCs7xMz1vUMFdMnYKdE4%2FKEQNI7Rgu0SpPYz%2FqOcAiAUyrJuowfaiNADjczalBIWQxLxOkbk7idRAsrpGIfBLSrVBAj1%2F%2F%2F%2F%2F%2F%2F%2F%2F%2F8BEAUaDDA1OTAwMzU0Njg2NSIMYPLyVfGMs2mHNVfFKqkE0ZXlRGX%2BE8JxAg1X9ENO6rnsqpdDXzuuaNMdAziEKW3KYfEZGVtznh8SFKH0%2Bhmj%2Fyl75uei8w2mEmK9%2FqWEnBrRZUQoIyBc3IiRQkX28kgR3LN%2BC29g61k%2F0DrVJC2hpzxGYXyjdkvofoJSE%2Bqkg%2BC537EIx9bHKByBhC1YVr%2Bb03DVXcLTxQVk30098ctxgjT3okj0QijN%2Fc7P2Q824AZwRs86l4k4RYoWuUU3H8riDy1vG8JmcDrLit%2FEa3HD2ilYT28xW7cmQeKT7khyMDSvbqlUN9RWVuYeOUASMT%2Fh00rYYwAWnMiQF%2BqcWQHqXECNql5LM5LU%2B6lcNa7ewvJxvBU1F6fQOrbdsTFOmBSY5HUj%2B4%2BUhiEiT6PNV72LzCFtoRg5BinVBNLq36wLHi4t13w18HDCdZTBmkwMBofJefEYqF5SwTaVyTJPr7m4AnI%2F73z241qJFCpx5%2BIqFOZcGBwjroWxdLcAtdcyDeNblXRYHFssUVkmK%2F%2BT%2BLYZBJa%2BIrafWykAWMRf3UepxduXcsV%2BUdUUTkMcYxYWB%2FxIT4K3nB2RTH8Jpp8BBpkw3NDVk7JFblpc2D7CsLru1bGptQ2aBeCvyiy4OB51hcnnTXm2OFX2gauooTcUr48BCK5%2FK8NX9mDz60uFIdrW2N6fWGAGRw7wVEGhVckSWLnsrlhgt7fRnJpPKmWRwk6ANG9q5QwINV430ecus7x9xgNvx13TeW1RDDCsiZubBjqqATGFZNTYwu7kNMk9Yw9azZ5SZDR4FnKiItwpSfE1i5fu1VOfOse4SaaSe1oXmGxhOYPXPM2d0M%2BubiIRoco4T%2BA5IqUaQZWUOXgbsi2nOSPIGSJZWoCFOtGr%2FI0gRqf6lm57wVUwMaGzJkuHdPjXpQsAnDOuo3uA2SZyTMoKIuWXRkFDlsaHZ8DVoWgKEFghZ3QqTcTBPTFb34dZQ%2BpQNA23okU64JI0MkuO&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20221105T203119Z&X-Amz-SignedHeaders=host&X-Amz-Expires=300&X-Amz-Credential=ASIAQ3PHCVTY6BBABSGA%2F20221105%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Signature=041982b6384c82ec11d596de7f204dff8be457bc7f56821dd0c178c24bc7a0c5&hash=64974f7a508f55af1144daa279f42f8f002db3db9fcbf1145fdfd11d949f9341&host=68042c943591013ac2b2430a89b270f6af2c76d8dfd086a07176afe7c76c2c61&pii=S1544612320300945&tid=spdf-b36c56ba-de22-4c01-ba5e-d76cc49fae94&sid=8f488de52f48e1458f886fc9349c122cfbffgxrqa&type=client&ua=5551575b5b015d5d55&rr=76585a335dd63ee1 ER - TY - JOUR TI - Determinants of corporate hedging: A (statistical) meta-analysis AU - Arnold, Matthias M. AU - Rathgeber, Andreas W. AU - Stöckl, Stefan T2 - The Quarterly Review of Economics and Finance DA - 2014/11// PY - 2014 DO - 10.1016/j.qref.2014.05.002 DP - DOI.org (Crossref) VL - 54 IS - 4 SP - 443 EP - 458 J2 - The Quarterly Review of Economics and Finance LA - en SN - 10629769 ST - Determinants of corporate hedging UR - https://linkinghub.elsevier.com/retrieve/pii/S1062976914000404 Y2 - 2022/11/05/20:41:20 L1 - https://pdf.sciencedirectassets.com/272067/1-s2.0-S1062976914X00050/1-s2.0-S1062976914000404/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEA0aCXVzLWVhc3QtMSJGMEQCIEZCJCs7xMz1vUMFdMnYKdE4%2FKEQNI7Rgu0SpPYz%2FqOcAiAUyrJuowfaiNADjczalBIWQxLxOkbk7idRAsrpGIfBLSrVBAj1%2F%2F%2F%2F%2F%2F%2F%2F%2F%2F8BEAUaDDA1OTAwMzU0Njg2NSIMYPLyVfGMs2mHNVfFKqkE0ZXlRGX%2BE8JxAg1X9ENO6rnsqpdDXzuuaNMdAziEKW3KYfEZGVtznh8SFKH0%2Bhmj%2Fyl75uei8w2mEmK9%2FqWEnBrRZUQoIyBc3IiRQkX28kgR3LN%2BC29g61k%2F0DrVJC2hpzxGYXyjdkvofoJSE%2Bqkg%2BC537EIx9bHKByBhC1YVr%2Bb03DVXcLTxQVk30098ctxgjT3okj0QijN%2Fc7P2Q824AZwRs86l4k4RYoWuUU3H8riDy1vG8JmcDrLit%2FEa3HD2ilYT28xW7cmQeKT7khyMDSvbqlUN9RWVuYeOUASMT%2Fh00rYYwAWnMiQF%2BqcWQHqXECNql5LM5LU%2B6lcNa7ewvJxvBU1F6fQOrbdsTFOmBSY5HUj%2B4%2BUhiEiT6PNV72LzCFtoRg5BinVBNLq36wLHi4t13w18HDCdZTBmkwMBofJefEYqF5SwTaVyTJPr7m4AnI%2F73z241qJFCpx5%2BIqFOZcGBwjroWxdLcAtdcyDeNblXRYHFssUVkmK%2F%2BT%2BLYZBJa%2BIrafWykAWMRf3UepxduXcsV%2BUdUUTkMcYxYWB%2FxIT4K3nB2RTH8Jpp8BBpkw3NDVk7JFblpc2D7CsLru1bGptQ2aBeCvyiy4OB51hcnnTXm2OFX2gauooTcUr48BCK5%2FK8NX9mDz60uFIdrW2N6fWGAGRw7wVEGhVckSWLnsrlhgt7fRnJpPKmWRwk6ANG9q5QwINV430ecus7x9xgNvx13TeW1RDDCsiZubBjqqATGFZNTYwu7kNMk9Yw9azZ5SZDR4FnKiItwpSfE1i5fu1VOfOse4SaaSe1oXmGxhOYPXPM2d0M%2BubiIRoco4T%2BA5IqUaQZWUOXgbsi2nOSPIGSJZWoCFOtGr%2FI0gRqf6lm57wVUwMaGzJkuHdPjXpQsAnDOuo3uA2SZyTMoKIuWXRkFDlsaHZ8DVoWgKEFghZ3QqTcTBPTFb34dZQ%2BpQNA23okU64JI0MkuO&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20221105T203836Z&X-Amz-SignedHeaders=host&X-Amz-Expires=300&X-Amz-Credential=ASIAQ3PHCVTY6BBABSGA%2F20221105%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Signature=6ae50a8d0fc3b19ec7d9c8766ef84247f9a21eacaa4f4a9d4aac1d5d9736f4ba&hash=8ad405dfd1d7dade542625a495a9d6cc23d45d23f34ffb765db96c4ad250b18c&host=68042c943591013ac2b2430a89b270f6af2c76d8dfd086a07176afe7c76c2c61&pii=S1062976914000404&tid=spdf-77133f9a-5647-41ec-9ed9-01d3c030aaa9&sid=8f488de52f48e1458f886fc9349c122cfbffgxrqa&type=client&ua=5551575b58540a0806&rr=765864dffbee3eeb ER - TY - JOUR TI - Integrated foreign exchange risk management: The role of import in medium-sized manufacturing firms AU - Aabo, Tom AU - Høg, Esben AU - Kuhn, Jochen T2 - Journal of Multinational Financial Management AB - Empirical research has focused on export as a proxy for exchange rate exposure and the use of foreign exchange derivatives as an instrument to deal with this exposure. This empirical study applies an integrated foreign exchange risk management approach with a particular focus on the role of import in medium-sized manufacturing firms in Denmark (a small, open economy). We find a strong, negative relation between import and the use of foreign exchange derivatives on the aggregate level. Our findings are consistent with the notion that firms use import to match the foreign exchange exposure created by foreign sales activities. DA - 2010/12/01/ PY - 2010 DO - 10.1016/j.mulfin.2010.08.002 DP - ScienceDirect VL - 20 IS - 4 SP - 235 EP - 250 J2 - Journal of Multinational Financial Management LA - en SN - 1042-444X ST - Integrated foreign exchange risk management UR - https://www.sciencedirect.com/science/article/pii/S1042444X10000289 Y2 - 2022/11/05/21:30:14 L1 - http://www.sciencedirect.com/science/article/pii/S1042444X10000289/pdfft?md5=dad286aa5a3da534f63044c04eb5b12e&pid=1-s2.0-S1042444X10000289-main.pdf&isDTMRedir=Y L2 - http://www.sciencedirect.com/science/article/pii/S1042444X10000289 KW - Import KW - Integrated foreign exchange risk management KW - Medium-sized firms ER - TY - JOUR TI - Forward Contracts and Firm Value: Investment Incentive and Contracting Effects AU - Bessembinder, Hendrik T2 - The Journal of Financial and Quantitative Analysis AB - Corporate risk hedging with forward contracts increases value by reducing incentives to underinvest. This occurs because the hedge decreases the sensitivity of senior claim value to incremental investment, allowing equity holders to capture a larger portion of the incremental benefit from new investment. Hedging also allows the firm to credibly commit to meet obligations in states where it otherwise could not, which improves contract terms the firm can negotiate with customers, creditors, and managers. These benefits cannot be duplicated by individual hedging, and each result holds independent of agents' risk preferences. DA - 1991/// PY - 1991 DO - 10.2307/2331409 DP - JSTOR VL - 26 IS - 4 SP - 519 EP - 532 SN - 0022-1090 ST - Forward Contracts and Firm Value UR - http://www.jstor.org/stable/2331409 Y2 - 2022/11/05/21:33:55 L1 - http://www.jstor.org/stable/pdfplus/10.2307/2331409.pdf?acceptTC=true ER - TY - JOUR TI - Measuring Firm Size in Empirical Corporate Finance AU - Li, Frank AU - Dang, Chongyu T2 - Journal of Banking & Finance AB - In empirical corporate finance research, firm size is commonly used as an important, fundamental firm characteristic. However, no paper gives a comprehensive assessment of the sensitivity of empirical results in corporate finance to different measures of firm size. This paper fills this hole by providing empirical evidence for “measurement effect” in “size effect”. In particular, this paper studies the influences of employing different proxies (total assets, total sales, and market value of equity) of firm size in 20 prominent areas in the empirical corporate finance research. We have several empirical implications. First, in most areas of corporate finance, the coefficients of firm size measures are robust in sign and statistical significance. However, when studying firm performance and capital structure, researchers should pay extra attention because firm size proxies (e.g., market cap) can be mechanically correlated. Second, the coefficients on regressors other than firm size often change sign and significance. We observe this phenomenon in almost all the areas except dividend policy and delta. Unfortunately this may suggest that some previous studies are not robust to using different firm size proxies. Researchers should either use all the important firm size measures as robustness checks or provide rationale of using any specific measure. Great caution must be exercised when some right-hand-side variables are collinear with the different firm size measures. Third, the goodness of fit measured by R-squared also varies when we use different firm size measures. Fourth, the results suggest that different firm size proxies capture different aspects of “firm size” and thus have different implications in corporate finance. Therefore the choice of these firm size measures needs both theoretical and empirical consideration. Our empirical results provide guidance to empirical corporate finance researchers who need to use firm size measures in their work. DA - 2013/01/01/ PY - 2013 DO - 10.2139/ssrn.2345506 DP - ResearchGate VL - 2018 forthcoming J2 - Journal of Banking & Finance L1 - https://www.researchgate.net/profile/Frank-Li-20/publication/272236587_Measuring_Firm_Size_in_Empirical_Corporate_Finance/links/5a83068faca272d6501c3082/Measuring-Firm-Size-in-Empirical-Corporate-Finance.pdf L4 - https://www.researchgate.net/publication/272236587_Measuring_Firm_Size_in_Empirical_Corporate_Finance ER - TY - JOUR TI - Elementos explicativos del endeudamiento de las empresas AU - Vadillo, Fernando Velázquez T2 - Análisis Económico AB - Se presentan brevemente los siguientes elementos explicativos del endeudamiento de las empresas: el marco macroeconómico (inflación, sistema fiscal, rentabilidad de la bolsa); la búsqueda de una estructura de financiamiento óptima (versión tradicional y proposiciones de Modigliani y Miller (MM); los aportes permitidos por la teoría contemporánea de la firma (costos de agencia y costos de transacciones). Se concluye que la inflación, el sistema fiscal y las expectativas optimistas de la bolsa, estimulan el endeudamiento de las empresas, que la inexistencia de una estructura óptima de financiamiento propuesta por MM, es cuestionada por la práctica cotidiana de las empresas y que la evolución de la teoría contemporánea permite tomar en cuenta nuevos determinantes del endeudamiento de las empresas. DA - 2004/// PY - 2004 DP - www.redalyc.org VL - XIX IS - 40 SP - 215 EP - 244 LA - Español SN - 0185-3937, 2448-6655 UR - https://www.redalyc.org/articulo.oa?id=41304012 Y2 - 2022/11/06/23:49:49 L1 - https://www.redalyc.org/pdf/413/41304012.pdf L2 - https://www.redalyc.org/articulo.oa?id=41304012 KW - costos de agencia KW - costos de transacción KW - endeudamiento de la empresa KW - estructura óptima de financiamiento ER - TY - JOUR TI - EFECTO DE LA TASA DE CAMBIO SOBRE LA RENTABLIDAD DE LAS EMPRESAS QUE COTIZAN EN LA BOLSA DE VALORES DE COLOMBIA AU - Peláez, Nathalia Giraldo DA - 2012/// PY - 2012 DP - Zotero SP - 27 LA - es L1 - https://bibliotecadigital.univalle.edu.co/bitstream/handle/10893/3733/CB-0472515.pdf?sequence=4 ER - TY - JOUR TI - The Relationship Between Cash Flow And Capital Expenditure: Evidence From German Automobile Sector AU - Saffarizadeh, Navid DA - 2014/08// PY - 2014 DP - Zotero SP - 50 LA - en L1 - http://i-rep.emu.edu.tr:8080/jspui/bitstream/11129/1885/1/Saffarizadeh.pdf ER - TY - JOUR TI - La globalización y el crecimiento empresarial a través de estrategias de internacionalización AU - Becerra, Doria Patricia Puerto T2 - Pensamiento & Gestión AB - Este artículo muestra la relación entre la globalización y el crecimiento de las empresas. El planteamiento inicia con una descripción amplia de la globalización hasta llegar a la plena identificación de la relación sinérgica que existe entre las dos variables. Adicionalmente, se hace referencia a las opciones estratégicas que el contexto mundial ofrece para alcanzar el crecimiento empresarial. El artículo no solo pretende resaltar la importancia de la globalización en el crecimiento empresarial, sino que, además, invita a explorar la influencia de los factores externos e internos sobre la toma de decisiones al momento de salir a los mercados extranjeros en búsqueda del crecimiento. Las estrategias de internacionalización como medio de crecimiento toman sentido cuando se mejora la productividad y se innova, es decir, cuando alcanza una condición que le garantice el éxito y la estabilidad. DA - 2010/// PY - 2010 DP - www.redalyc.org IS - 28 SP - 171 EP - 195 LA - Español SN - 1657-6276, 2145-941X UR - https://www.redalyc.org/articulo.oa?id=64615176009 Y2 - 2022/11/08/01:33:39 L1 - https://www.redalyc.org/pdf/646/64615176009.pdf L2 - https://www.redalyc.org/articulo.oa?id=64615176009 KW - business growth KW - crecimiento empresarial KW - estrategia de internacionalización KW - expansión de los mercados KW - expansion of markets KW - foreign markets KW - Globalización KW - Globalization KW - opciones estratégicas KW - strategic options KW - strategy of internationalization ER - TY - JOUR TI - Why do firms engage in selective hedging? Evidence from the gold mining industry AU - Adam, Tim R. AU - Fernando, Chitru S. AU - Salas, Jesus M. T2 - Journal of Banking & Finance AB - The widespread practice of managers speculating by incorporating their market views into firms’ hedging programs (“selective hedging”) remains a puzzle. Using a 10-year sample of North American gold mining firms, we find no evidence that selective hedging is more prevalent among firms that are believed to possess an information advantage. In contrast, we find strong evidence that selective hedging is more prevalent among financially constrained firms, suggesting that this practice is driven by asset substitution motives. We detect weak relationships between selective hedging and some corporate governance measures but find no evidence of a link between selective hedging and managerial compensation. DA - 2017/04/01/ PY - 2017 DO - 10.1016/j.jbankfin.2015.05.006 DP - ScienceDirect VL - 77 SP - 269 EP - 282 J2 - Journal of Banking & Finance LA - en SN - 0378-4266 ST - Why do firms engage in selective hedging? UR - https://www.sciencedirect.com/science/article/pii/S0378426615001338 Y2 - 2022/11/08/02:31:28 L1 - https://www.sciencedirect.com/science/article/am/pii/S0378426615001338 KW - Corporate governance KW - Corporate risk management KW - Financial distress KW - Managerial compensation KW - Selective hedging KW - Speculation ER - TY - GEN TI - The Use of Foreign Currency Derivatives and Firm Market Value AU - Allayannis, George AU - Weston, James AB - This paper examines the use of foreign currency derivatives (FCDs) by a sample of 720 large U.S. nonfinancial firms between 1990 and 1995 and its potential impact on firm value. Using Tobin's Q as an approximation of a firm's market valuation, we find a positive relationship between firm value and the use of FCDs. The hedging premium is statistically and economically significant mostly after 1993 and is on average 5.7\% of firm value. This result is robust to a) controls for size, profitability, leverage, growth opportunities, ability to access financial markets, industrial and geographical diversification, credit quality, industry classification (4-digit SIC), year-dummies and firm fixed-effects; b) the use of a weight-adjusted industry Tobin's Q and other measures of value, such as the market to book and the market to sales ratios; and, c) alternative estimation techniques that handle the potential impact of outliers. Using the ratio of foreign currency derivatives to foreign sales as a proxy for the percentage of exposure that a firm hedges, we observe a significant dispersion in our measure of the hedge ratio. In univariate tests we find a nonlinear relationship between Q and our proxy. However, firm-specific factors explain this relationship in multivariate tests and it appears that firms are hedging optimally. CY - Rochester, NY DA - 1998/10/01/ PY - 1998 DO - 10.2139/ssrn.138498 DP - Social Science Research Network LA - en UR - https://papers.ssrn.com/abstract=138498 Y2 - 2022/11/08/02:34:13 L1 - https://papers.ssrn.com/sol3/Delivery.cfm/98103015.pdf?abstractid=138498&mirid=1 L2 - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=138498 KW - SSRN KW - George Allayannis KW - James Weston KW - The Use of Foreign Currency Derivatives and Firm Market Value ER - TY - JOUR TI - Corporate Hedging and Shareholder Value AU - Aretz, Kevin AU - Bartram, Söhnke M. T2 - Journal of Financial Research AB - Although theory suggests that corporate hedging can increase shareholder value in the presence of capital market imperfections, empirical studies show overall mixed support for rationales of hedging with derivatives. Although various empirical challenges and limitations advise some caution with regard to the interpretation of the existing evidence, the results are consistent with derivatives use being just one part of a broader financial strategy that considers the type and level of financial risks, the availability of risk management tools, and the operating environment of the firm. Moreover, corporations rely heavily on pass-through, operational hedging, and foreign currency debt to manage financial risk. DA - 2010/// PY - 2010 DO - 10.1111/j.1475-6803.2010.01278.x DP - Wiley Online Library VL - 33 IS - 4 SP - 317 EP - 371 LA - en SN - 1475-6803 UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1475-6803.2010.01278.x Y2 - 2022/11/08/03:27:16 L1 - https://mpra.ub.uni-muenchen.de/14088/1/MPRA_paper_14088.pdf L2 - https://onlinelibrary.wiley.com/doi/10.1111/j.1475-6803.2010.01278.x KW - F3 KW - F4 KW - G3 ER - TY - JOUR TI - Exchange rate exposure, hedging, and the use of foreign currency derivatives AU - Allayannis, George AU - Ofek, Eli T2 - Journal of International Money and Finance AB - We examine whether firms use foreign currency derivatives for hedging or for speculative purposes. Using a sample of S&P 500 nonfinancial firms for 1993, we find evidence that firms use currency derivatives for hedging, as their use, significantly reduces the exchange-rate exposure firms face. We also find that, while the decision to use derivatives depends on exposure factors (i.e., foreign sales and foreign trade) and on variables largely associated with theories of optimal hedging (i.e., size and R&D expenditures), the level of derivatives used depends only on a firm's exposure through foreign sales and trade. DA - 2001/04/01/ PY - 2001 DO - 10.1016/S0261-5606(00)00050-4 DP - ScienceDirect VL - 20 IS - 2 SP - 273 EP - 296 J2 - Journal of International Money and Finance LA - en SN - 0261-5606 UR - https://www.sciencedirect.com/science/article/pii/S0261560600000504 Y2 - 2022/11/08/03:45:56 L2 - http://www.sciencedirect.com/science/article/abs/pii/S0261560600000504 KW - Risk management KW - Corporate policies KW - Foreign trade KW - Multinationals ER - TY - JOUR TI - Enterprise Risk Management Program Quality: Determinants, Value Relevance, and the Financial Crisis AU - Baxter, Ryan AU - Bedard, Jean C. AU - Hoitash, Rani AU - Yezegel, Ari T2 - Contemporary Accounting Research AB - This paper investigates factors associated with high-quality Enterprise Risk Management (ERM) programs in financial services firms, and whether ERM quality enhances performance and signals credibility to the financial markets. ERM, developed with the assistance of the accounting profession, provides a framework and plan to integrate management of all sources of risk. Challenged by measurement difficulties common to research on management control systems, prior ERM studies present mixed findings. Using ERM quality ratings of financial companies by Standard & Poor's, we find that higher ERM quality is associated with greater complexity, less resource constraint, and better corporate governance. Controlling for such characteristics, we find that higher ERM quality is associated with improved accounting performance. Results show a market reaction to signals of enhanced management control from initial ERM quality ratings and rating revisions, and a stronger response to earnings surprises for firms with higher ERM quality. Focusing on the recent global financial crisis, our analysis suggests that there is no relation between ERM quality and market performance prior to and during the market collapse. However, returns of higher ERM quality companies are higher during the market rebound. Overall, results reveal that firm performance and value are enhanced by high-quality controls that integrate risk management efforts across the firm, enabling better oversight of managers' risk-taking behavior and aligning that behavior with the strategic direction of the company. DA - 2013/// PY - 2013 DO - 10.1111/j.1911-3846.2012.01194.x DP - Wiley Online Library VL - 30 IS - 4 SP - 1264 EP - 1295 LA - en SN - 1911-3846 ST - Enterprise Risk Management Program Quality UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1911-3846.2012.01194.x Y2 - 2023/01/22/21:21:06 L2 - https://onlinelibrary.wiley.com/doi/epdf/10.1111/j.1911-3846.2012.01194.x ER - TY - JOUR TI - The effect of Enterprise Risk Management on the risk and the performance of Spanish listed companies AU - Otero González, Luís AU - Durán Santomil, Pablo AU - Tamayo Herrera, Aracely T2 - European Research on Management and Business Economics AB - This paper evaluates the effect of Enterprise Risk Management (ERM) on the performance and the financial stability of a sample of non-financial Spanish listed companies. The information about ERM is taken from the annual reports, management reports and annual corporate governance reports disseminated over four years (2012−2015). The data on performance and financial stability have been obtained through the SABI (Iberian Balance Sheet Analysis System) and Morningstar Direct. The results obtained show that the adoption of ERM is not associated with a change in the performance of Spanish companies (measured through the return on equity, return on assets and Tobin’s Q) nor does it reduce the probability of bankruptcy. Having a chief risk officer (CRO) can actually reduce performance, although it can improve the degree of financial health measured as the distance to default. Regarding the relationship between the hedging of risks on the profitability and the level of risk, we find evidence of improvement through the hedging of exchange risk. DA - 2020/09/01/ PY - 2020 DO - 10.1016/j.iedeen.2020.08.002 DP - ScienceDirect VL - 26 IS - 3 SP - 111 EP - 120 J2 - European Research on Management and Business Economics LA - en SN - 2444-8834 UR - https://www.sciencedirect.com/science/article/pii/S2444883420303028 Y2 - 2023/01/22/21:21:33 L1 - http://www.sciencedirect.com/science/article/pii/S2444883420303028/pdfft?md5=1304a3288bd3108dd9c077e008dceb2b&pid=1-s2.0-S2444883420303028-main.pdf&isDTMRedir=Y L2 - http://www.sciencedirect.com/science/article/pii/S2444883420303028 KW - Enterprise Risk Management KW - ERM KW - Performance KW - Risk ER -