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


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:
Divisions: College of Business and Social Sciences > Aston Business School > Accounting
Uncontrolled Keywords: UK non-financial firms,potato futures contracts,hedge,Economics and Econometrics
Publication ISSN: 1466-4283
Last Modified: 23 Oct 2019 10:01
Date Deposited: 08 Oct 2009 15:48
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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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