Hedging Policy and Firm Characteristics

Firm Characteristic

Impact on Hedging

Size

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Leverage

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Growth options

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Credence goods

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Product warranties

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Future product support

?

Supplier financing

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Closely held firm

?

Firm-specific assets

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Regulation

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Marginal corporate tax rate

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Marginal personal tax rate

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Tax progressivity

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Question: Does what you're going to hedge affect how you hedge?