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Derivative financial instrument use in Australia
Author(s) -
Berkman Henk,
Bradbury Michael E.,
Hancock Phil,
Innes Clare
Publication year - 2002
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/1467-629x.00069
Subject(s) - business , proxy (statistics) , leverage (statistics) , derivative (finance) , market liquidity , financial distress , operating leverage , monetary economics , finance , financial system , economics , machine learning , profitability index , computer science
This paper examines the relation between derivatives use and financial characteristics of Australian industrial and mining firms. The firm characteristics proxy for financial distress, tax losses, managerial ownership, growth opportunities, the ability to generate operating cash flows and liquidity. We also control for firm size, dividends and exposure to foreign exchange risk. The results show that firm size and leverage are the main explanatory variables for derivative use for both industrial and mining firms