The Impact of Institutional Differences on Derivatives Usage: a Comparative Study of US and Dutch Firms
AbstractThis paper examines the influence of institutional differences on corporate risk management practices in the USA and the Netherlands. We compare results to surveys in each country using a strategy that corrects for differences over industry and size classes across the Dutch and US samples. We document several differences in the firms' uses and attitudes towards derivatives and attempt to attribute them to the differences in the institutional environments between the USA and the Netherlands. We find that institutional differences appear to have an important impact on risk management practices and derivatives use across US and Dutch firms. Copyright Blackwell Publishing Ltd 2003.
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Bibliographic InfoArticle provided by European Financial Management Association in its journal European Financial Management.
Volume (Year): 9 (2003)
Issue (Month): 3 ()
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1354-7798
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Other versions of this item:
- Bodnar, G.M. & Jong, A. de & Macrae, V., 2001. "The Impact of Institutional Differences on Derivatives Usage: A Comparative Study of US and Dutch Firms," Discussion Paper 2001-62, Tilburg University, Center for Economic Research.
- F30 - International Economics - - International Finance - - - General
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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