CrossRef Open Access 2013 96 sitasi

CEO Entrenchment and Corporate Hedging: Evidence from the Oil and Gas Industry

Praveen Kumar Ramon Rabinovitch

Abstrak

AbstractUsing a unique data set with detailed information on the derivative positions of upstream oil and gas firms during 1996–2008, we find that hedging intensity is positively related to factors that amplify chief executive officer (CEO) entrenchment and free cash flow agency costs. There is also robust evidence that hedging is motivated by the reduction of financial distress and borrowing costs, and that it is influenced by both intrinsic cash flow risk and temporary spikes in commodity price volatility. We present a comprehensive perspective on the determinants of corporate hedging, and the results are consistent with the predictions of the risk management and agency costs literatures.

Penulis (2)

Praveen Kumar

Ramon Rabinovitch

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Kumar, P., Rabinovitch, R. (2013). CEO Entrenchment and Corporate Hedging: Evidence from the Oil and Gas Industry. https://doi.org/10.1017/s0022109013000276

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Informasi Jurnal

Tahun Terbit: 2013
Bahasa: en
Total Sitasi: 96×
Sumber Database: CrossRef
DOI: 10.1017/s0022109013000276
Akses: Open Access ✓