학술저널
FINANCIAL RISK HEDGING, BORROWING AND CAPITAL EXPENDITURE
- People & Global Business Association
- Global Business and Finance Review
- Vol.10 No.2
-
2005.1259 - 69 (11 pages)
- 10
In this paper we provide new evidence on the relation between hedging, debt financing and capital expenditure. Specifically, we analyze the size and timing of debt visits and capital expenditures in relation to a given year's hedging activity. Our results suggest hedging activity is more positively related to new borrowings than leverage, but unrelated to same-period capital expenditure. The first result is consistent with an external financing motivation but the second implies factors other than underinvestment drive hedging policy.
Abstract
INTRODUCTION
RELATION OF HEDGING TO EARNINGS, NEW BORROWINGS AND UNDERINVESTMENT
SAMPLE AND DESCRIPTIVE STATISTICS
ANALYSIS
SUMMARY AND CONCLUSIONS
REFERENCES
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