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The Impact of Institutional Differences on Derivatives Usage : A Comparative Study of US and Dutch Firms

Author

Listed:
  • Bodnar, G.M.
  • de Jong, A.

    (Tilburg University, School of Economics and Management)

  • Macrae, V.

Abstract

This 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.
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Suggested Citation

  • Bodnar, G.M. & de Jong, A. & Macrae, V., 2001. "The Impact of Institutional Differences on Derivatives Usage : A Comparative Study of US and Dutch Firms," Other publications TiSEM 03c666d1-7640-49e1-ac16-a, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:03c666d1-7640-49e1-ac16-a60788c8c0e5
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    References listed on IDEAS

    as
    1. Stulz, René M., 1984. "Optimal Hedging Policies," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 19(2), pages 127-140, June.
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    More about this item

    JEL classification:

    • 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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