The Impact of Institutional Differences on Derivatives Usage: A Comparative Study of US and Dutch Firms

Gordon M. Bodnar, Abe de Jong, Victor Macrae

Research output: Contribution to journalArticleResearchpeer-review

48 Citations (Scopus)

Abstract

This paper examines the influence of institutional differences on corporate risk management practices in the USA 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 USA 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.

Original languageEnglish
Pages (from-to)271-297
Number of pages27
JournalEuropean Financial Management
Volume9
Issue number3
DOIs
Publication statusPublished - 1 Jan 2003
Externally publishedYes

Keywords

  • Derivatives
  • F30
  • G15
  • G32
  • Hedging
  • International finance
  • Risk management

Cite this