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Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

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JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Why Do Non-Financial Firms Select One Type of Derivatives Over Others?

Author(s): Hong V. Nguyen

Citation: Hong V. Nguyen, (2011) "Why Do Non-Financial Firms Select One Type of Derivatives Over Others?" Journal of Applied Business and Economics, Vol. 12, Iss. 3, pp. 91 - 109

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The increase in derivatives use over the past three decades has stimulated both theoretical and

empirical research into the basis of such use. However, results from studies examining the

financial characteristics of firms using each type of derivatives are not always easy to interpret

and to make comparisons. This is due to the fact that it is not uncommon for firms to use more

than one type of derivatives at the same time. We establish that differences exist, for each of the

three types of derivatives (interest rate, foreign currency, and commodity price), between the

results obtained with a sample of exclusive users and those obtained with a sample of nonexclusive

users. Prominent among these differences is the effect of size: it disappears when we

utilize only observations involving exclusive use of each type of derivatives.