The propensity to hedge with futures contracts:the case of potato futures contracts

Chelley-Steeley, Patricia L. and Lavers, Claire (2005). The propensity to hedge with futures contracts:the case of potato futures contracts. Applied Economics, 37 (18), pp. 2143-2146.

Abstract

This paper studies why UK non-financial firms hedge with potato futures contracts. It is found that the financial characteristics of firms in the sample play an important role in influencing the propensity to hedge. For example, it is found that firms that hedge are on average larger than firms that do not hedge. Firms that hedge also have more volatile earnings. Furthermore, firms that do hedge appear to want to smooth earnings to reduce the costs of financial distress and avoid entering the highest tax threshold. © 2005 Taylor & Francis.

Publication DOI: https://doi.org/10.1080/00036840500278152
Divisions: Aston Business School > Accounting
Aston Business School > Accounting Research Group
Uncontrolled Keywords: UK non-financial firms,potato futures contracts,hedge,Economics and Econometrics
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2005-10
Authors: Chelley-Steeley, Patricia L.
Lavers, Claire

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