International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


The Determinants of Corporate Hedging Policies
Xuequn Wang, Lida Fan


The objective of this paper is to estimate the determinants for corporate hedging activities in oil and gas industry. We found that managerial incentive plays an important role in corporate hedging decisions. Firms whose managers possess greater equity ownership and fewer stock options in their compensation package tend to hedge more extensively. In addition, firm size, financial leverage, and geographic diversification significantly affect corporate hedging policies.

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