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All Outputs (4)

Does derivatives use reduce the cost of equity? (2018)
Journal Article
Ahmed, S., Judge, A., & Mahmud, S. E. (2018). Does derivatives use reduce the cost of equity?. International Review of Financial Analysis, 60, 1-16. https://doi.org/10.1016/j.irfa.2018.09.004

This paper examines the impact of hedging on the cost of equity capital. Using handcollected data on derivatives use for a sample of German non-financial firms, we find that user firms have a 109 basis point lower industry-adjusted cost of equity tha... Read More about Does derivatives use reduce the cost of equity?.

A smoother ride: companies based in countries with bankruptcy procedures that favour creditors over shareholders have a greater incentive to hedge (2016)
Journal Article
Judge, A. (2016). A smoother ride: companies based in countries with bankruptcy procedures that favour creditors over shareholders have a greater incentive to hedge. Treasurer, 48-49

In their seminal work, Nobel prize-winning economists Franco Modigliani and Merton Miller (M&M) argued that in a perfect capital market, where there are no taxes and no contracting costs, such as those associated with bankruptcy, a firm’s choice of f... Read More about A smoother ride: companies based in countries with bankruptcy procedures that favour creditors over shareholders have a greater incentive to hedge.

An empirical examination of the lead–lag relationship between spot and futures markets: evidence from Thailand (2014)
Journal Article
Judge, A., & Reancharoen, T. (2014). An empirical examination of the lead–lag relationship between spot and futures markets: evidence from Thailand. Pacific-Basin Finance Journal, 29, 335-358. https://doi.org/10.1016/j.pacfin.2014.05.003

This study investigates whether a lead–lag relationship exists between the spot market and the futures market in Thailand during the period 2006 through 2012. In a rational, efficient market, returns on derivative securities and their underlying asse... Read More about An empirical examination of the lead–lag relationship between spot and futures markets: evidence from Thailand.