Determinants of corporate hedging and derivatives: a revisit

Article Abstract:

A LOGIT analysis of hedging effects on earnings volatility and firm value reveals that hedging lessens the probability of financial distress but no evidence has been found pointing to hedging as a positive factor in increasing firm value by reducing tax liability. The study also reveals that ownership structure does effect the probability of hedging. Also firms with institutional and managerial owners as well as large firms are more likely to hedge.

Financial Management, Derivatives (Financial instruments), Hedging (Finance)

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Increase in risk and saving behavior

Article Abstract:

The paper utilizes the consumption-saving behavior to demonstrate extension of the unambiguous comparative statics analysis in an increase in risk. The extension can be applied in saving, labor and insurance. A nonsatiable and risk-averse borrower increases his borrowing while a non-satiable and risk averse lender decreases his saving when there is a change in risk dominance factors.

Taiwan, Commercial Banks, Commercial Banking, Science & research, Business Financing, Research

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Asymmetric information and distance: an empirical assessment of geographical credit rationing

Article Abstract:

The geographical credit rationing is incorporated in a simple theoretical model and empirically testable implications are derived. The influence of geographical proximity between borrowing firm and lending bank on credit risk management is examined.

Sweden, Credit Management

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