Advanced Search
MyIDEAS: Login to save this paper or follow this series

Italian nonfinancial firms and derivatives

Contents:

Author Info

  • Mariano Graziano

    ()
    (Banca d'Italia)

Registered author(s):

    Abstract

    This paper studies the characteristics of the Italian nonfinancial firms using derivatives and the purpose of the derivatives use according to the most important literature in financial risk management. By using the Italian credit register and balance sheet data this study extends for the first time the derivatives analysis to small and medium firms. The paper finds that derivatives are used frequently among nonfinancial firms. Firms using derivatives are the most exposed to financial risks and have different economic and financial characteristics with respect to non-using ones. By examining some financial risk indicators the analysis finds a relation between high derivative exposure and financial distress. In the use of derivatives bank-firm relationship is more concentrated than in the loan relationship.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.bancaditalia.it/pubblicazioni/econo/quest_ecofin_2/qef139/QEF_139.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Questioni di Economia e Finanza (Occasional Papers) with number 139.

    as in new window
    Length:
    Date of creation: Oct 2012
    Date of revision:
    Handle: RePEc:bdi:opques:qef_139_12

    Contact details of provider:
    Postal: Via Nazionale, 91 - 00184 Roma
    Web page: http://www.bancaditalia.it
    More information through EDIRC

    Related research

    Keywords: derivatives; banks; risk management;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. John R. Graham & Daniel A. Rogers, 2002. "Do Firms Hedge in Response to Tax Incentives?," Journal of Finance, American Finance Association, American Finance Association, vol. 57(2), pages 815-839, 04.
    2. Guay, Wayne & Kothari, S. P, 2003. "How much do firms hedge with derivatives?," Journal of Financial Economics, Elsevier, Elsevier, vol. 70(3), pages 423-461, December.
    3. Gordon M. Bodnar & Gregory S. Hayt & Richard C. Marston, 1998. "1998 Wharton Survey of Financial Risk Management by US Non-Financial Firms," Financial Management, Financial Management Association, Financial Management Association, vol. 27(4), Winter.
    4. Mian, Shehzad L., 1996. "Evidence on Corporate Hedging Policy," Journal of Financial and Quantitative Analysis, Cambridge University Press, Cambridge University Press, vol. 31(03), pages 419-439, September.
    5. Smith, Clifford W. & Stulz, René M., 1985. "The Determinants of Firms' Hedging Policies," Journal of Financial and Quantitative Analysis, Cambridge University Press, Cambridge University Press, vol. 20(04), pages 391-405, December.
    6. Guay, Wayne R., 1999. "The impact of derivatives on firm risk: An empirical examination of new derivative users1," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 26(1-3), pages 319-351, January.
    7. Hoa Nguyen & Robert Faff, 2007. "Are Financial Derivates Really Value Enhancing? Australian Evidence," Accounting, Finance, Financial Planning and Insurance Series, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance 2007_14, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    8. Gianluca Bison & Loriana Pellizzon & Domenico Sartore, 2002. "La copertura dei rischi finanziari nelle imprese non finanziarie italiane attraverso gli strumenti derivati," Moneta e Credito, Economia civile, Economia civile, vol. 55(217), pages 55-75.
    9. Geczy, Christopher & Minton, Bernadette A & Schrand, Catherine, 1997. " Why Firms Use Currency Derivatives," Journal of Finance, American Finance Association, American Finance Association, vol. 52(4), pages 1323-54, September.
    10. René M. Stulz, 1996. "Rethinking Risk Management," Journal of Applied Corporate Finance, Morgan Stanley, Morgan Stanley, vol. 9(3), pages 8-25.
    11. Vickery, James, 2008. "How and why do small firms manage interest rate risk," Journal of Financial Economics, Elsevier, Elsevier, vol. 87(2), pages 446-470, February.
    12. Stulz, Rene M., 2004. "Should We Fear Derivatives?," Working Paper Series, Ohio State University, Charles A. Dice Center for Research in Financial Economics 2004-5, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    13. Sohnke M. Bartram & Gregory W. Brown & Frank R. Fehle, 2003. "International Evidence on Financial Derivatives Usage," Finance, EconWPA 0307003, EconWPA, revised 24 Jul 2003.
    14. Amrit Judge, 2006. "Why and How UK Firms Hedge," European Financial Management, European Financial Management Association, European Financial Management Association, vol. 12(3), pages 407-441.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_139_12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.