Does Hedging Affect Firm Value? Evidence from the US Airline Industry

By D. Carter, D. A. Rogers, Betty Simkins. 2006

403 citations recorded by the source corpus.

Subfields: Accounting, Mechanical Engineering, Safety, Risk, Reliability and Quality

View Paper: https://www.semanticscholar.org/paper/2dbe43ab41ec0bd505dcc54140731056f0e527e6

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In Accounting

In Mechanical Engineering

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Citations in the corpus

CORPORATE HEDGING AND SHAREHOLDER VALUE (2010, background): “…support for an increase of shareholder wealth through corporate risk management, for instance by approximately 4% for a large sample of U.S. firms with exchange rate exposure (Allayannis and Weston, 2001) and 12-16% for a sample of firms belonging to the U.S. airline industry (Carter et al., 2006).”
The Impact of Enterprise Risk Management on the Marginal Cost of Reducing Risk: Evidence from the Insurance Industry (2014, background): “Carter et al. (2006) find that the hedging premium could be as large as 10%, and further find that the positive relation between hedging and firm value increases in capital investment, and most of the hedging premium is attributable to the interaction of hedging with investment, suggesting that the…”
Corporate hedging and the cost of debt (2014, background): “Empirical studies suggest a positive relation between hedging and firm value (Berrospide, Purnanandam, and Rajan (2010), Carter, Rogers, and Simkins (2006), and Allayannis and Weston (2001)).”
The Real and Financial Implications of Corporate Hedging (2011, positive): “Allayannis and Weston (2001) and Carter et al. (2006), for example, nd that hedging is associated with some 5% to 10% increase in rm value.”
Corporate social responsibility and CEO confidence (2017, positive): “For example, Allayannis and Weston (2001), Carter et al. (2006), Adam and Fernando (2006), Bartram et al. (2011), Campello et al. (2011) and Perez-Gonzalez and Yun (2013) all report that hedging increases firm value.”
Dynamic Risk Management (2014, methodology): “In the context of jet fuel price hedging by airlines, Carter, Rogers, and Simkins (2006a, 2006b) study the effect of hedging on firm value.”
Risk management and firm value: recent theory and evidence (2016, background): “They also confirm the value premium to hedging that is first documented by Carter et al. (2006), but find that those firms that hedge more due to higher fuel price exposures do not experience a value premium as compared to airlines that choose more “stable” hedging policy.”
Derivative usage and firm value: The influence of agency costs and monitoring problems (2010, background): “For instance, Allayannis and Weston (2001), Adam and Fernando (2006), Carter et al. (2006), and Berrospide et al. (2008) among others find a positive relation between derivative usage and firm value.”
Corporate Environmental Policy and Shareholder Value: Following the Smart Money (2017, positive): “On the one hand, Allayannis & Weston (2001), Carter, Rogers, and Simkins (2006), Chidambaran, Fernando, and Spindt (2001), and Graham and Rogers (2002) find a positive relationship between risk management and firm value.”