A Survey on Risk Management and Usage of Derivatives by Non-Financial Italian Firms

58 Pages Posted: 21 Nov 2008 Last revised: 6 Apr 2015

See all articles by Gordon M. Bodnar

Gordon M. Bodnar

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS)

Costanza Consolandi

University of Siena

Giampaolo Gabbi

SDA Bocconi School of Management

Ameeta Jaiswal-Dale

University of St. Thomas - Opus College of Business

Date Written: November 21, 2008

Abstract

This paper presents a survey on the risk management function and the usage of hedging instruments by Italian non-financial firms. The objective is to measure how firms manage the following risks: Exchange-foreign, Interest rate, Energetic, Commodity, Equity, Counter-party, Operational, Country. The survey was conducted both for listed and non-listed firms, suggest that Italian firms are less likely to use derivatives than US firms. The percentage of firms using derivatives or insurance instruments has not changed noticeably in the last 10 years. The use of derivatives is more significant among large firms in every risk typology. The reasons to explain the limited practice in derivative markets are the insufficient exposure to risk area to warrant management, the exposure more effectively managed by other means and the difficulties in monitoring/measuring contract effectiveness.

Suggested Citation

Bodnar, Gordon M. and Consolandi, Costanza and Gabbi, Giampaolo and Jaiswal Dale, Ameeta, A Survey on Risk Management and Usage of Derivatives by Non-Financial Italian Firms (November 21, 2008). CAREFIN Research Paper No. 7/08, Available at SSRN: https://ssrn.com/abstract=1305033

Gordon M. Bodnar

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS) ( email )

1740 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-663-7731 (Phone)
202-663-7718 (Fax)

Costanza Consolandi

University of Siena ( email )

Via Banchi di Sotto, 55
Siena, 53100
Italy

Giampaolo Gabbi (Contact Author)

SDA Bocconi School of Management ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Ameeta Jaiswal Dale

University of St. Thomas - Opus College of Business ( email )

1000 LaSalle Avenue
Minneapolis, MN 55403
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
800
Abstract Views
3,304
Rank
56,169
PlumX Metrics