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Derivative Practices in Australian and Canadian Industries

Franziska Wolf

Deakin Business School, Deakin University, Australia

E-mail Address: f.wolf@deakin.edu.au

Corresponding author.

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Terry Boulter

Graduate School of Business and Law, RMIT University, Australia

E-mail Address: terry.boulter@rmit.edu.au

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, and

Sukanto Bhattacharya

Deakin Business School, Deakin University, Australia

E-mail Address: sukanto.bhattacharya@deakin.edu.au

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https://doi.org/10.1142/S0219091517500278Cited by:0 (Source: Crossref)

Abstract

This study examines derivative practices of Australian and Canadian firms from 2009 to 2013 in a post-global financial crisis environment. Our results show significant differences in the level of derivative usage between both countries, in contrast to earlier hedging studies. We also observe that Canadian firms have a higher propensity to use financial derivatives. We find similarities in derivative usage for firms operating in the industrials, materials, consumer discretionary, and healthcare industries. However, corporate derivative practices seem to be significantly different for energy and IT firms during the sample period.

Keywords:

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