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Derivatives Usage by Australian Industrial Firms: Pre-, during and post-GFC

Author

Listed:
  • Hassan Tanha

    (Finance and Financial Services Discipline, College of Business, Victoria University, Ballarat Rd, Footscray VIC 3011, AUSTRALIA)

  • Michael Dempsey

    (Tan Duc Thang University, Ho Chi Minh City, VIETNAM)

  • Mena Labeb

    (Victoria University, Ballarat Rd, Footscray VIC 3011, AUSTRALIA)

Abstract

We avail of International Accounting Standards IFRS 7 to investigate the usage and motivation of hedging by non-financial Australian firms. We examine the usage of derivative instruments in relation to features such as firm size, the firm¡¯s return on equity, leverage, and growth characteristics. The results of our panel data logistic regression indicate that the use of hedging instruments in Australia is influenced positively by the firm¡¯s gearing ratio and negatively by its propensity to growth.

Suggested Citation

  • Hassan Tanha & Michael Dempsey & Mena Labeb, 2018. "Derivatives Usage by Australian Industrial Firms: Pre-, during and post-GFC," Review of Economics & Finance, Better Advances Press, Canada, vol. 11, pages 31-39, February.
    • Handle: RePEc:bap:journl:180103
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Derivatives; Hedging; Risk management; Panel data; Logit analysis;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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