Risk Management and Derivatives Use in Australian Firms

Jonathan A. Batten, Samanthala Hettihewa

Research output: Contribution to journalReview articlepeer-review

2 Citations (Scopus)

Abstract

Country-specific information on risk management is increasingly important, not only for investors and decision makers in international markets but also, for those in national and regional markets. This study reports the results of a cross-sectional survey of risk management practice and derivatives use by a sample of Australian firms. Overall, the results suggest that firm-specific factors appear to have some influence on risk management practice with the industry of the respondent being the most important, while the degree of international exposure has the least. Larger and more internationally exposed firms are likely to have more frequent reporting of derivatives use, and are more likely to use swaps and options to manage risks than other types of firms. Issues and implications for international firms are discussed.

Original languageEnglish
Pages (from-to)37-44
Number of pages8
JournalJournal of Asia Business Studies
Volume1
Issue number2
DOIs
Publication statusPublished - 1 May 2007

Keywords

  • Australia
  • Derivatives
  • Firm-specific factors
  • Hedging
  • Risk management

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