Open Access. Powered by Scholars. Published by Universities.®
Finance and Financial Management Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Finance and Financial Management
Two Essays On Corporate Hedging: The Choice Of Instruments And Methods, Pinghsun Huang
Two Essays On Corporate Hedging: The Choice Of Instruments And Methods, Pinghsun Huang
LSU Doctoral Dissertations
This dissertation examines corporate use of derivative instruments and multi-period hedging methods. It studies the use of linear (e.g. futures) and nonlinear (e.g. options) derivatives in a sample of 382 U.S. non-financial firms (920 firm-year observations) between 1992 and 1996. It also measures the performance of stacked hedge techniques with applications to three investment assets (heating oil, light crude oil, and unleaded gasoline) and to three commercial commodities (British Pound, Deutsche Mark, and Swiss Franc). In a stacked hedge, corporations hedge the long-term exposures by repeatedly rolling nearby futures contracts until settlement. Analyzing the 382 firms, I find that both …
Market Timing And Cost Of Capital Of The Firm, Kyojik Song
Market Timing And Cost Of Capital Of The Firm, Kyojik Song
LSU Doctoral Dissertations
Graham and Harvey’s (2001) survey evidence and Baker, Greenwood, and Wurgler (2003) indicate that firm managers try to time debt markets based on term spreads or excess bond returns when choosing the maturity of new debt issues. Whether debt market timing increases firm value via a reduced cost of capital is an empirical question. I examine differences in firm value across non-timers and timers, where timers are defined as firms that follow either a naïve strategy of choosing long-term debt when the term premium is low or a complex strategy from Baker et al. (2003) based on the predictability of …