Change search
ReferencesLink to record
Permanent link

Direct link
The use of derivatives in Nordic firms
Stockholm University, Faculty of Social Sciences, School of Business, Finance.
2011 (English)In: European Journal of Finance, ISSN 1351-847X, E-ISSN 1466-4364, Vol. 17, no 5-6, 355-376 p.Article in journal (Refereed) Published
Abstract [en]

We contribute to the previous literature on the use of derivatives by studying separately the determinants of profit seeking versus those of hedging. In our sample of listed firms from four Nordic countries, about 62% use derivatives. Although the hedging motive clearly dominates, over half of the firms give some weight for additional income as a motive for the use of derivatives. Combining survey data on the use of derivatives with financial variables, data on management and blockholder ownership, and data on firm-level diversification, we find that very different determinants drive the use of derivatives for these two motives. Firm-level diversification is negatively related to hedging, but is positively related to the use of derivatives for additional income. Financial firms use derivatives more for profit than for hedging. We also find weak support for a value-increasing effect of the use of derivatives.

Place, publisher, year, edition, pages
2011. Vol. 17, no 5-6, 355-376 p.
Keyword [en]
derivatives, risk management, hedging, degree of diversification, impact of ownership
National Category
Business Administration
URN: urn:nbn:se:su:diva-66627DOI: 10.1080/1351847X.2010.543836ISI: 000290675300003OAI: diva2:468622
authorCount :3Available from: 2011-12-21 Created: 2011-12-20 Last updated: 2012-01-25Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Brunzell, Tor
By organisation
In the same journal
European Journal of Finance
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 246 hits
ReferencesLink to record
Permanent link

Direct link