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Derivative Practices in Australian and Canadian Industries

Author

Listed:
  • Franziska Wolf

    (Deakin Business School, Deakin University, Australia)

  • Terry Boulter

    (Graduate School of Business and Law, RMIT University, Australia)

  • Sukanto Bhattacharya

    (Deakin Business School, Deakin University, Australia)

Abstract

This study examines derivative practices of Australian and Canadian firms from 2009 to 2013 in a post-global financial crisis environment. Our results show significant differences in the level of derivative usage between both countries, in contrast to earlier hedging studies. We also observe that Canadian firms have a higher propensity to use financial derivatives. We find similarities in derivative usage for firms operating in the industrials, materials, consumer discretionary, and healthcare industries. However, corporate derivative practices seem to be significantly different for energy and IT firms during the sample period.

Suggested Citation

  • Franziska Wolf & Terry Boulter & Sukanto Bhattacharya, 2017. "Derivative Practices in Australian and Canadian Industries," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-39, December.
    • Handle: RePEc:wsi:rpbfmp:v:20:y:2017:i:04:n:s0219091517500278
    DOI: 10.1142/S0219091517500278
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