Title
Risk management for Italian non-financial firms: Currency and interest rate exposure
Department/School
Finance
Date of this version
2013
Document Type
Article
Keywords
risk management; derivatives; hedging; corporate finance
Abstract
This paper surveys risk management practices among Italian non-financial firms. This paper’s contribution lies in investigating derivative usage particular to Italian businesses, a group whose public disclosure of derivative instruments is not routine. Italy is characterized by a high percentage of small and medium sized family run firms. The survey examines determinants of currency and interest rate derivative use with respect currency and to firm size, geographical location, rating, industry, access to capital markets and educated management. The results from the logistic regressions suggest that Italian non-financial firms’ use of derivative contracts is strongly influenced by these characteristics
Volume
19
Issue
5
Published in
European Financial Management Journal
Citation/Other Information
19(5), 887-910. DOI: 10.1111/j.1468-036X.2012.00659.x