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CEO age, education, and introduction of hedging in the oil and gas industry

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  • Zahid Iqbal

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Abstract

This study examines if a CEO’s age and education explain introduction of hedging in the oil and gas industry. We compare CEO age, college degree, and educational institutions between the hedgers that initiated use of derivatives and the nonhedgers that never used hedging. Our findings show that a hedge CEO is younger than a nonhedge CEO in the year hedging is initiated. We also find evidence that a higher percentage of the hedge CEOs have petroleum-related degrees and a smaller percentage have business degrees when compared to the nonhedge CEOs. The results of our logistic regressions indicate that CEO age explains the use of financial derivatives in the oil and gas industry. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Zahid Iqbal, 2015. "CEO age, education, and introduction of hedging in the oil and gas industry," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(1), pages 189-200, January.
  • Handle: RePEc:spr:jecfin:v:39:y:2015:i:1:p:189-200
    DOI: 10.1007/s12197-013-9274-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Hedging; CEO; Oil and gas; G32; G39;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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