Business Commons^™

Essays On Corporate Finance And Interstate Risk Sharing, Liu Hong

Graduate Theses and Dissertations

My dissertation consists of two topics: the relation between derivatives and corporate finance, and the relation between bank deregulation and interstate risk sharing.

In the first essay, I study the use of commodity derivatives among U.S. oil and gas producers. Using hand-collected data, I find large variations in hedging intensity and hedging profits. On average, firms generate significantly positive profits, and their profits relate positively to the intensity of hedging. I further decompose the hedge ratio into two components: the pure hedging component and the market timing component. I find that the hedging profits relate strongly and positively to the …