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- W4380894090 endingPage "106801" @default.
- W4380894090 startingPage "106801" @default.
- W4380894090 abstract "We study the intensity of joint hedging of oil and gas prices by US petroleum firms. We aim to explain the rationale for and find the determinants of joint hedging, as well as its impact on firm market value, performance, and riskiness. Joint hedging that takes into account the interdependence between risks should have a positive impact on firm value in the presence of multiple risks. We verify this theory in an innovative way, by testing the effects of hedging oil and gas prices simultaneously and by using an instrumental variable framework to attenuate the problem of endogeneity between firm value and risk management. We find evidence of higher market value, higher accounting performance, and lower riskiness for firms with a high propensity to jointly hedge their oil and gas production to a greater extent. We show that joint hedging dominates single-commodity hedging." @default.
- W4380894090 created "2023-06-17" @default.
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- W4380894090 date "2023-08-01" @default.
- W4380894090 modified "2023-09-27" @default.
- W4380894090 title "Determinants and real effects of joint hedging: An empirical analysis of US oil and gas producers" @default.
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- W4380894090 doi "https://doi.org/10.1016/j.eneco.2023.106801" @default.
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