On risk management determinants: what really matters?
本文构建了债务与对冲同时决策的理论模型，并开发新的估计方法进行实证检验，发现对冲并非总能提高债务能力，且财务困境成本、信息不对称等因素是公司对冲的重要决定因素。
We develop a theoretical model in which debt and hedging decisions are made simultaneously, and test its predictions empirically. To address inefficiencies in current estimation methods for simultaneous equations with censored dependent variables, we build an original estimation technique based on the minimum distance estimator. Consistent with predictions drawn from our theoretical model, we show that more hedging does not always lead to a higher debt capacity. We also find that financial distress costs, information asymmetry, the presence of financial slack, corporate governance, and managerial risk aversion are important determinants of corporate hedging. Overall, our evidence shows that modeling hedging and leverage as simultaneous decisions makes a difference in analyzing corporate hedging determinants.