Working Capital Management, the Credit Crisis, and Hedging Strategies: Canadian Evidence
34 Pages Posted: 26 Feb 2015
Date Written: February 20, 2015
Abstract
This study uses a sample of Canadian natural resource firms during the global financial crisis (GFC) of 2007-2008 to examine the influence of firm hedging strategies on their working capital management. Our evidence implies that increased cash holdings and derivatives are alternative ways of hedging risk, and also provides another perspective on the U.S. “trapped cash” controversy since our sample firms are not R&D intensive and do not face the same tax regime as U.S. multinationals.
Keywords: Credit crisis, working capital, hedging, derivatives, Canada
JEL Classification: G32
Suggested Citation: Suggested Citation
Kieschnick, Robert L. and Rotenberg, Wendy, Working Capital Management, the Credit Crisis, and Hedging Strategies: Canadian Evidence (February 20, 2015). Rotman School of Management Working Paper No. 2569411, Available at SSRN: https://ssrn.com/abstract=2569411 or http://dx.doi.org/10.2139/ssrn.2569411
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.