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2 edition of Derivatives usage in risk management by U.S. and German non-financial firms found in the catalog.

Derivatives usage in risk management by U.S. and German non-financial firms

Gordon M. Bodnar

Derivatives usage in risk management by U.S. and German non-financial firms

a comparitive [i.e. comparative] survey

by Gordon M. Bodnar

  • 118 Want to read
  • 13 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Derivative securities -- United States.,
  • Derivative securities -- Germany.,
  • Risk management -- United States.,
  • Risk management -- Germany.

  • Edition Notes

    StatementGordon M. Bodnar, Günther Gebhardt.
    SeriesNBER working paper series -- working paper 6705, Working paper series (National Bureau of Economic Research) -- working paper no. 6705.
    ContributionsGebhardt, Günther., National Bureau of Economic Research.
    The Physical Object
    Pagination27 p. :
    Number of Pages27
    ID Numbers
    Open LibraryOL22402180M

      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.   Magee (), analyzing large non-financial companies in the U.S. from to , Bartram et al. (), assessing non-financial companies in 47 countries, and Li et al. (), examining non-financial firms listed on the New Zealand Stock Exchange, conclude that “derivative use cannot improve corporate value” (Li et al.

    “ Derivatives Usage in Risk Management by U.S. and German Non-Financial Firms: A Comparative Survey.” Journal of International Financial Management and Accounting, 10 (), – Bodnar, G. M.; Hayt, G.; and Marston, R. C.. “ Wharton Survey of Derivative Usage by U.S. Non-Financial Firms.”. Using a sample of non-financial firms listed on the Indonesian Stock Exchange over the period – (with 1, firm-year observations), the findings of this study provide empirical evidence that the decision to use derivatives and the intensity of derivatives usage .

    Bodnar, Gordon M. & Gebhardt, Günther, "Derivatives usage in risk management by U.S. and German non-financial firms: A comparative survey," CFS Working Paper Series /17, Center for Financial Studies (CFS).   For instance, some studies report on the use of derivatives by nonfinancial firms. Yet, another group of researchers has investigated the determinants of corporate hedging policies. These and other studies of similar focus have made important contributions to the literature. This study sheds light on derivatives usage in the UK market.


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Derivatives usage in risk management by U.S. and German non-financial firms by Gordon M. Bodnar Download PDF EPUB FB2

We find that German firms are more likely to use derivatives than US firms, with 78 percent of German firms using derivatives compared to 57 percent of US firms. Aside from this higher overall usage, the general pattern of usage across industry and size groupings is comparable across the two by: This paper is a comparative study of the responses to the Wharton School survey of derivative usage among US non-financial firms and a companion survey on German non-financial firms.

It is not a mere comparison of the results of both studies, but a comparative study, drawing a comparable subsample of firms from the US study to match the sample of German firms on both size and Cited by: PDF | On Jan 1,Gordon M.

Bodnar published Derivatives Usage in Risk Management by U.S. and German Non-Financial Firms | Find, read and cite all the research you need on ResearchGate. they use derivatives mostly for risk management, differences appear in the primary goal of using derivatives, with German firms focusing more on managing accounting results whereas US firms focused more on managing cash flows.

German firms are more likely to incorporate their own market view on price movement when taking. We find that German firms are more likely to use derivatives than US firms, with 78% of German firms using derivatives compared to 57% of US firms. Aside from this higher overall usage, the general pattern of usage across industry and size groupings is comparable across the two countries.

BibTeX @ARTICLE{Bodnar99derivativesusage, author = {Gordon M. Bodnar and Günther Gebhardt}, title = {Derivatives Usage in Risk Management by U.S. and German Non-Financial Firms}, journal = {Journal of International Financial Management and Accounting}, year = {}, pages = {}}.

We find that German firms are more likely to use derivatives than US firms, with 78% of German firms using derivatives compared to 57% of US firms.

Aside from this higher overall usage, the general pattern of usage across industry and size groupings is comparable across the two countries.

In both countries, foreign currency derivative usage is most common, followed closely by interest rate derivatives, with commodity derivatives. Derivatives usage in risk management by U.S. and German non-financial firms: A comparative survey. This paper is a comparative study of the responses to the Wharton School survey of derivative usage among US non-financial firms and a companion survey on German non-financial firms.

It is not a mere comparison of the results of. There are economies of scale for derivatives usage, and managers use derivatives for risk management purposes rather than speculation. Derivatives usage across risk classes in Brazil follows patterns observed internationally: companies use derivatives primarily to manage foreign exchange risk, followed by interest rates and commodities exposures.

Derivative Usage in Risk Management by U.S. and German Non-Financial Firms: A Comparative Survey. Journal of International Financial Management and Accounting,10 (3), Bodnar, G., Hayt, G., Marston, R., Smithson, C., Wharton Survey of Derivatives Usage by US.

Derivatives usage in risk management by U.S. and German non-financial firms. Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Gordon M Bodnar; Günther Gebhardt; National Bureau of Economic Research.

The first evidence of derivatives use by non-financial firms is presented duringin a survey conducted by Philips () in a sample of U.S.

firms. % of the responding firms mention that they use derivatives to hedge their financial risk. Studies of non-financial firms in the USA and New Zealand have shown that derivatives usage is often related to company size.

In particular, Bodnar et al. () and Prevost et al. () find. Bodnar GM, Gebhardt G () Derivatives usage in risk management by US and German non-financial firms: a comparative survey. J Int Financ Manag Account 10(3)– CrossRef Google Scholar Bodnar GM, Gentry WM () Exchange rate exposure and industry characteristics: evidence from Canada, Japan, and the USA.

The value of developing a basis for benchmarking good management practice in the use of derivatives to manage financial price risk represents an important area of research. Such a framework is of relevance to the demand and supply side of the derivatives market and to.

– In the last two decades, a number of studies have examined the risk management practices within nonfinancial companies.

For instance, some studies report on the use of derivatives by nonfinancial firms. Yet, another group of researchers has investigated the determinants of corporate hedging policies.

These and other studies of similar focus have made important contributions to the literature. Derivatives are sometimes used to hedge a position (protecting against the risk of an adverse move in an asset) or to speculate on future moves in the underlying instrument.

Hedging is a. THE USE OF FINANCIAL DERIVATIVES IN RISK MANAGEMENT PURPOSES OF NON-FINANCIAL FIRMS IN BOSNIA AND HERZEGOVINA 1 Adnan ROV ČANIN 2 Aida HANI Ć3 Abstract The financial system in Bosnia and Herzegovina is bank centered which follows the continental model, where banks play a leading role and in the case of BiH it means the bank participation of.

Derivatives are more commonly used by big companies and they are essentially used for hedging. Finally, the lack of information about derivatives is the most worrying for financial managers.

Kapitsinas investigated the derivative use of non-financial companies in risk management processes in Greece. It was found that % of these. EconStor is a publication server for scholarly economic literature, provided as a non-commercial public service by the ZBW.

The most complete, up-to-date guide to risk management in finance Risk Management and Financial Institutions, Fifth Edition explains all aspects of financial risk and financial institution regulation, helping you better understand the financial marketsand their potential dangers.

Inside, youll learn the different types of risk, how and where they appear in different types of institutions, and.Derivatives and Risk Management made simple 3.

Market risk Market risk refers to the sensitivity of an asset or portfolio to overall market price movements such as interest rates, inflation, equities, currency and property. Pension funds are heavily exposed to interest and inflation rate risks as.

1. Introduction. Managers are risk averse, and hence firms often embark on corporate hedging to mitigate risk (see Stulz,Allayannis and Weston, ).It is common for managers to use derivatives to hedge financial risk – in particular those risks that can arise from adverse changes, over relatively short time horizons, in commodity prices, foreign currencies and interest rates (see.