The Impact of Institutional Differences on Derivatives Usage: A Comparitive Study of Us and Dutch Firms
41 Pages Posted: 2 Jun 2002
Date Written: April 2002
This paper examines the influence of institutional differences on corporate risk management practices in the US and the Netherlands. We compare results to surveys in each country using a strategy that corrects for differences over industry and size classes across the Dutch and US samples. We document several differences in the firms' uses and attitudes towards derivatives and attempt to attribute them to the differences in the institutional environments between the US and the Netherlands. We find that institutional differences appear to have an important impact on risk management practices and derivatives use across US and Dutch firms.
Keywords: risk management, derivatives, hedging, international finance
JEL Classification: F30, G15, G32
Suggested Citation: Suggested Citation