Working Capital Management, the Credit Crisis, and Hedging Strategies: Canadian Evidence

34 Pages Posted: 26 Feb 2015

See all articles by Robert L. Kieschnick

Robert L. Kieschnick

University of Texas at Dallas

Wendy Rotenberg

University of Toronto - Rotman School of Management

Multiple version iconThere are 2 versions of this paper

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

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

Robert L. Kieschnick

University of Texas at Dallas ( email )

800 W. Campbell Rd, SM31
Richardson, TX 75080
United States
972-883-6273 (Phone)

HOME PAGE: http://www.utdallas.edu/~rkiesch/

Wendy Rotenberg (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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