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Type: Thesis
Title: The effects of competitive environments on corporate selective hedging behaviour
Author: Xu, Wei
Issue Date: 2019
School/Discipline: Business School
Abstract: This thesis examines corporate derivative use and selective hedging behaviour taking into account the competitive environment in which the firm and its decision makers are involved. The effects of competitive environments are investigated from different levels. One is the industry level which considers the predation risk that firms could encounter because of product market competition. The other is at the board level; specifically the conflicts in board decision making because of board gender diversity. The test results support the explanatory power of both predation risk and board gender diversity on corporate selective hedging behaviour. Firms encountering higher predation risk are more likely to use derivatives to time the market for extra returns. Female participation on boards encourages selective hedging behaviour. However, adverse effects appear stronger on selective hedging when more females are appointed as directors. Once a critical mass is achieved (a board with over 20% or at least three female members), the intensity of selective hedging behaviour is significantly mitigated. A bell-shaped relationship between board gender diversity and selective hedging behaviour is found. Though a competitive environment has different levels and dimensions, by analysing this issue from both external and internal perspectives, this study emphasises the importance of contextual settings in discussing corporate decision making and risk management.
Advisor: Davidson, Robyn
Cheong, Chee
Dissertation Note: Thesis (Ph.D.) -- University of Adelaide, Business School, 2019
Keywords: Derivatives
selective hedging
predation risk
board gender diversity
marking timing
Provenance: This electronic version is made publicly available by the University of Adelaide in accordance with its open access policy for student theses. Copyright in this thesis remains with the author. This thesis may incorporate third party material which has been used by the author pursuant to Fair Dealing exceptions. If you are the owner of any included third party copyright material you wish to be removed from this electronic version, please complete the take down form located at:
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