Niclas Andrén
Prefekt Företagsekonomiska institutionen
How do Firms Hedge in Financial Distress?
Författare
Summary, in English
We examine how firms hedge in financial distress. Using hand-collected data from oil and gas producers, we find that these firms hedge oil prices during periods of financial distress. Derivative portfolios in these firms are characterized by short put options. These positions are part of a composite three-way collar strategy that combines buying put options and selling put and call options with differing strike prices. Because liquidity demand varies with the degree of financial distress, the three-way collar strategy preserves incentives for future growth.
Avdelning/ar
- Företagsekonomiska institutionen
- Redovisning och finans
Publiceringsår
2022-05-03
Språk
Engelska
Sidor
1324-1351
Publikation/Tidskrift/Serie
Journal of Futures Markets
Volym
42
Issue
7
Dokumenttyp
Artikel i tidskrift
Förlag
John Wiley & Sons Inc.
Ämne
- Business Administration
Nyckelord
- Corporate hedging
- risk management
- financial distress
- economic distress
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 1096-9934