Hedging or Market Timing? Selecting the Interest Rate Exposure of Corporate Debt

By Michael W. Faulkender. 2005

292 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/68e412eb764205168a32b7097d2270a6c38d6122

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. A. Naranjo
2. Malcolm P. Baker
3. Söhnke M. Bartram
4. Sergey Chernenko
5. Michael W. Faulkender
6. Larry Fauver
7. Steven C. Mann
8. V. Mihov

In Economics and Econometrics

1. Söhnke M. Bartram
2. Malcolm P. Baker
3. A. Naranjo
4. Sergey Chernenko
5. Larry Fauver
6. Michael W. Faulkender
7. Steven C. Mann
8. P. Dastidar

In Finance

1. A. Naranjo
2. Malcolm P. Baker
3. Söhnke M. Bartram
4. Sergey Chernenko
5. Michael W. Faulkender
6. Larry Fauver
7. Steven C. Mann
8. Michael R. Roberts

Citations in the corpus

• The Use of Foreign Currency Derivatives, Corporate Governance, and Firm Value Around the World (2012, unknown): “Faulkender (2005) reaches a similar conclusion examining, in a sample of U.S. firms, interest-rate exposure through debt and the impact of interestrate derivatives use on it.”
• Corporate Debt Issuance and the Historical Level of Interest Rates (2008, background): “Studies that examine factors related to decisions to issue debt include Fisher (1930), Myers (1977), Myers and Majluf (1984), Diamond (1991), Barclay and Smith (1995), Guedes and Opler (1996), Hoven and Mauer (1996), Jung, Kim, and Stulz (1996), Houston and James (1996), Hovakimian, Opler, and Titma”
• Corporate hedging and speculation with derivatives (2017, background): “However, Chernenko and Faulkender (2011) and Faulkender (2005) identify evidence of speculation (market timing) in firms’ interest rate risk management practices, and Géczy, Minton, and Schrand (2007) find that frequent speculators have significantly lower return volatility than non-speculators and…”
• The Two Sides of Derivatives Usage: Hedging and Speculating with Interest Rate Swaps (2011, background): “Following Faulkender (2005), our primary empirical analyses are of the final interest rate exposure of the firm’s debt (i.”
• CORPORATE HEDGING AND SHAREHOLDER VALUE (2010, unknown): “In contrast, there is also some, though limited evidence of speculation (market timing) in firms’ interest rate risk management practices (Faulkender, 2005).”
• Capital Market-Driven Corporate Finance (2009, background): “Baker et al. (2003a) find return predictability in bond maturity choice, and patterns are also apparent in corporate hedging choices in Brown et al. (2006) and Faulkender (2005).”
• Corporate Financial and Investment Policies when Future Financing is Not Frictionless (2011, unknown): “Both papers report evidence that is consistent with a link between hedging and …nancial constraints. See also Faulkender (2005) .”
• Derivative usage and firm value: The influence of agency costs and monitoring problems (2010, background): “…with derivative usage such that firm managers may selectively use derivatives for speculation and self-interests (e.g., Geczy et al., 2007; Faulkender, 2005; Campbell and Kracaw, 1999; Bodnar et al., 1998; Tufano, 1998; Ljungqvist, 1994; Stulz, 1984), resulting in a potential loss in firm…”