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- Title
Menedzserösztönzők hatása a vállalati fedezésre.
- Authors
ZSOLT, BIHARY; BARBARA, DÖMÖTÖR
- Abstract
The study explains the diversity of corporate hedging behaviour through a simple model. The hedging ratio is obtained by maximizing the expected utility, which is a combination of corporate-level utility and a component that models the incentives for the financial manager. If the financial manager has no other incentive than to maximize the utility based on total corporate profit, the results of classic models are obtained, whereby hedging has two components: pure hedge and the speculation component. In an unbiased forward market, this suggests the wisdom of a full hedge for the exposure. If the financial manager expects that her/his evaluation will be based exclusively on the financial profit, being risk averse, he decides not to hedge at all. The hedging ratio depends on the relative weight of these contrary effects. To confirm the results, the authors investigated the hedging ratio of Hungarian large corporations. They found that firms which apply hedge accounting hedge more, but the difference was insignificant, due to the small sample size.
- Publication
Economic Review / Kozgazdasagi Szemle, 2018, Vol 65, p701
- ISSN
0023-4346
- Publication type
Article
- DOI
10.18414/KSZ.2018.7-8.701