Do Firms Hedge Optimally? Evidence from an exogenous governance change

• Main Authors: HUANG, Sterling Zhenrui, PEYER, Urs, SEGAL, Benjamin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Board independence; hedging; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1345; https://ink.library.smu.edu.sg/context/soa_research/article/2344/viewcontent/DoFirmsHedgeOptimally_2013_wp.pdf
• Institution: Singapore Management University

We ask whether firms hedge optimally by analyzing the impact the NYSE/NASDAQ listing rule changes have had, which exogenously imposed board composition changes on a subset of firms, on financial risk management. Using new proxies for the extent of financial risk management in non-financial firms we...