• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Handelshøyskolen BI
  • Student papers
  • Master of Science
  • View Item
  •   Home
  • Handelshøyskolen BI
  • Student papers
  • Master of Science
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

A study of hedging at the firm level in u.s. oil and gas exploration firms

Birkeland, Josefine Slinde; Wang, Niels Poppe
Master thesis
Thumbnail
View/Open
1746389.pdf (1.552Mb)
Preliminary Thesis.pdf (1.370Mb)
URI
http://hdl.handle.net/11250/2476917
Date
2017
Metadata
Show full item record
Collections
  • Master of Science [1117]
Abstract
This paper studies the hedging activities of 98 U.S. oil and gas exploration

rms between 2004 and 2015. We investigate the following three hypothesis;

(1) to what extent does hedging a ect rms' stock price exposure towards

oil and gas price

uctuations, (2) what are the value implications of hedging,

and, (3) what are the determinants of hedging. To test these hypotheses,

we collect detailed information on rm speci c characteristics and oil and gas

prices from the rm's annual reports, Bloomberg and COMPUSTAT. We nd

that hedging decreases the rms' stock price exposure towards oil and gas

prices in the presence of decreasing price patterns, referred to as crisis periods.

These periods are also the only periods we nd evidence of a hedging premium.

Outside crisis periods, the market appears to penalize rms that hedge with a

lower market value. We explain this as evidence of investor loss aversion. As

for the determinants of hedging, we nd that the hedging decision is related

to several rm characteristics, like size,
Description
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2017
Publisher
BI Norwegian Business School

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit