Corporate hedging and firm value. Can corporate hedging increase firm value?

dc.contributor.advisorQiu, J.
dc.contributor.authorMuller, Keaven
dc.date.issued2016-08-30
dc.description.abstractFinance theory indicates that corporate hedging can increase firm value by reducing costs of taxes, financial distress and agency costs, and by reducing cash flow volatility. This paper covers both a direct effect of corporate hedging on firm value, as well as the effect of corporate hedging on stock price return volatility. A panel data sample of 53 U. S. firms with quarterly data for 5 consecutive years is used to research the effect of hedging on firm value and stock price return volatility. Using a OLS-regression I find that hedging has no significant effect on stock price return volatility. I also find very limited support for the hypothesis that hedging increases firm value. Overall I find limited support for positive effects of corporate hedging for the firms in the sample.en_US
dc.identifier.urihttp://hdl.handle.net/123456789/3229
dc.language.isoenen_US
dc.thesis.facultyFaculteit der Managementwetenschappenen_US
dc.thesis.specialisationFinancial Economicsen_US
dc.thesis.studyprogrammeMaster Economicsen_US
dc.thesis.typeMasteren_US
dc.titleCorporate hedging and firm value. Can corporate hedging increase firm value?en_US
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