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The Two Sides of Derivatives Usage: Hedging and Speculating with Interest Rate Swaps
16 references·16 citing·40 second hopsampled
The Two Sides of Derivatives Usage: Hedging and Speculating with Interest Rate Swaps (2011)The Two Sides of Derivatives Usage: Hedgi…Detecting Earnings Management (2012)Detecting Earnings ManagementEstimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Estimating Standard Errors in…Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure (2008)Back to the Beginning: Persis…Does the Source of Capital Affect Capital Structure? (2005)Does the Source of Capital Af…The rewards to meeting or beating earnings expectations (2002)The rewards to meeting or bea…Management's Incentives to Avoid Negative Earnings Surprises (2002)Management's Incentives to Av…Estimating the Value of Employee Stock Option Portfolios and Their Sensitivities to Price and Volatility (2002)Estimating the Value of Emplo…Why Firms Use Currency Derivatives (1997)Why Firms Use Currency Deriva…Earnings management to avoid earnings decreases and losses (1997)Earnings management to avoid …Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry (1996)Who Manages Risk? An Empirica…Detecting Earnings Management. (1995)Detecting Earnings Management.Risk Management: Coordinating Corporate Investment and Financing Policies (1993)Risk Management: Coordinating…On the Determinants of Corporate Hedging (1993)On the Determinants of Corpor…Earnings Management During Import Relief Investigations (1991)Earnings Management During Im…The Determinants of Firms' Hedging Policies (1985)The Determinants of Firms' He…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Trade policy uncertainty and financial investment: Evidence from Chinese energy firms (2022)Trade policy uncertainty and …Corporate Derivatives Usage, Information Environment, and Stock Price Crash Risk (2021)Corporate Derivatives Usage, …“How using derivative instruments and purposes affects performance of Islamic banks? Evidence from CAMELS approach” (2020)“How using derivative instrum…A View Inside Corporate Risk Management (2019)A View Inside Corporate Risk …A review of derivatives research in accounting and suggestions for future work (2019)A review of derivatives resea…Interest Rate Risk Management in Uncertain Times (2018)Interest Rate Risk Management…Does corporate hedging enhance shareholder value? A meta-analysis (2018)Does corporate hedging enhanc…Who Bears Interest Rate Risk? (2017)Who Bears Interest Rate Risk?An Explanation of Negative Swap Spreads: Demand for Duration from Underfunded Pension Plans (2016)An Explanation of Negative Sw…Commodity futures hedging, risk aversion and the hedging horizon (2015)Commodity futures hedging, ri…Banks' Risk Exposures (2015)Banks' Risk ExposuresInflation Risk in Corporate Bonds (2014)Inflation Risk in Corporate B…Does Hedging Affect Firm Value? Evidence from a Natural Experiment (2014)Does Hedging Affect Firm Valu…Hedging, selective hedging, or speculation? Evidence of the use of derivatives by Brazilian firms during the financial crisis (2013)Hedging, selective hedging, o…Financial derivatives, opacity, and crash risk: Evidence from large US banks (2012)Financial derivatives, opacit…Exploring factors affecting the proper use of derivatives (2012)Exploring factors affecting t…Corporate Forecasts of Earnings Per Share and Stock Price Behavior: Empirical Test (1976)The economic implications of corporate financial reporting (2005)Prospect Theory: An Analysis of Decision under Risk (1979)Prospect theory: An analysis of decision under risk (1988)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)On financial contracting (1979)Optimal capital structure under corporate and personal taxation (1980)The investment opportunity set and corporate financing, dividend, and compensation policies (1992)Managerial incentives and risk-taking☆ (2005)The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis (2008)FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968)Initial conditions and moment restrictions in dynamic panel data models (1998)Econometric Analysis of Cross Section and Panel Data (2001)Capital Structure Decisions: Which Factors Are Reliably Important? (2007)Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies (2011)Do Peer Firms Affect Corporate Financial Policy? (2013)Accounting earnings and cash flows as measures of firm performance (1994)Debt covenant violation and manipulation of accruals (1994)An Empirical Evaluation of Accounting Income Numbers (1968)Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods (2008)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Determinants of corporate borrowing (1977)Corporate financing and investment decisions when firms have information that investors do not have (1984)The theory and practice of corporate finance: evidence from the field (2001)The Cash Flow Sensitivity of Cash (2004)Why Do U.S. Firms Hold So Much More Cash than They Used To? (2009)Specification Tests in Econometrics (1978)Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence (2007)Robust Inference With Multiway Clustering (2011)Policy Uncertainty and Corporate Investment (2015)Earnings management and investor protection: an international comparison (2003)Earnings Management through Real Activities Manipulation (2003)Performance matched discretionary accrual measures (2005)
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References

  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches10,793 cited
  • 1991Earnings Management During Import Relief Investigations8,369 cited
  • 1995Detecting Earnings Management.6,532 cited
  • 1997Earnings management to avoid earnings decreases and losses3,839 cited
  • 2012Detecting Earnings Management3,821 cited
  • 1985The Determinants of Firms' Hedging Policies3,270 cited
  • 1993Risk Management: Coordinating Corporate Investment and Financing Policies2,897 cited
  • 2008Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure1,846 cited
  • 2002The rewards to meeting or beating earnings expectations1,706 cited
  • 2002Estimating the Value of Employee Stock Option Portfolios and Their Sensitivities to Price and Volatility1,697 cited
  • 2002Management's Incentives to Avoid Negative Earnings Surprises1,615 cited
  • 1996Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry1,432 cited
  • 2005Does the Source of Capital Affect Capital Structure?1,377 cited
  • 1993On the Determinants of Corporate Hedging

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1,260 cited
  • 1997Why Firms Use Currency Derivatives1,172 cited
  • Cited by

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    • 2014Inflation Risk in Corporate Bonds131 cited
    • 2016An Explanation of Negative Swap Spreads: Demand for Duration from Underfunded Pension Plans129 cited
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    • 2017Who Bears Interest Rate Risk?108 cited
    • 2019A View Inside Corporate Risk Management82 cited
    • 2012Financial derivatives, opacity, and crash risk: Evidence from large US banks77 cited
    • 2019A review of derivatives research in accounting and suggestions for future work73 cited
    • 2015Commodity futures hedging, risk aversion and the hedging horizon59 cited
    • 2022Trade policy uncertainty and financial investment: Evidence from Chinese energy firms50 cited
    • 2013Hedging, selective hedging, or speculation? Evidence of the use of derivatives by Brazilian firms during the financial crisis43 cited
    • 2018Interest Rate Risk Management in Uncertain Times40 cited
    • 2021Corporate Derivatives Usage, Information Environment, and Stock Price Crash Risk40 cited
    • 2018Does corporate hedging enhance shareholder value? A meta-analysis39 cited
    • 2020“How using derivative instruments and purposes affects performance of Islamic banks? Evidence from CAMELS approach”34 cited
    • 2012Exploring factors affecting the proper use of derivatives34 cited