Collateral requirements and corporate policy decisions

Kizkitza Biguri; Jorg R. Stahl

doi:10.1016/j.jfi.2024.101104

Collateral requirements and corporate policy decisions

Kizkitza Biguri^*
, Jorg R. Stahl

^*Autor correspondente para este trabalho

Resultado de pesquisa › revisão de pares

1 Citação (Scopus)

Resumo

We challenge the theorized trade-off between risk management and investment due to collateral constraints. We compile a unique dataset of derivative transactions and collateral for U.S. public firms. Exploiting exogenous variation in cash-collateral, we observe significant effects on hedging but no impact on investment. Variations in PPE-collateral, instead, impact investment but show no association with hedging. Our findings suggest that a firm’s assets should not be seen as interchangeable; they rather play distinct roles in the collateralization process.

Idioma original	English
Número do artigo	101104
Número de páginas	13
Revista	Journal of Financial Intermediation
Volume	60
DOIs	https://doi.org/10.1016/j.jfi.2024.101104
Estado da publicação	Publicado - out. 2024

Acesso ao documento

10.1016/j.jfi.2024.101104

Outros arquivos e links

Link to publication in Scopus

Políticas, mercado de crédito, e efeitos distributivos
Cerqueiro, G. (PI), Schliephake, E. (CoPI), Bonfim, D. (Investigador), Stahl, J. (PI) & Panetti, E. (Investigador)
Fundação para a Ciência e a Tecnologia
1/01/21 → 31/12/23
Projeto
CUBE: Católica Lisbon Research Unit in Business and Economics
Machado, F. (PI), Aranda, A. M. (Investigador), Costa, A. I. D. A. (Investigador), Martins, A. P. (Investigador), Bernard, A. (Investigador), Fidalgo, A. (Investigador), Reis, C. (Investigador), Abecassis-Moedas, C. (Investigador), Santos, C. (Investigador), Tran, D. (Investigador), Fernandes, D. (Investigador), Bonfim, D. (Investigador), Schliephake, E. (Investigador), Kalogirou, F. (Investigador), Reis, F. (Investigador), Santos, F. (Investigador), Machado, F. (Investigador), Sguera, F. (Investigador), Cerqueiro, G. (Investigador), Reis, H. (Investigador), Barreto, I. (Investigador), Silva, J. (Investigador), Salvado, J. C. (Investigador), Neves, J. C. D. (Investigador), Gijsbrechts, J. (Investigador), Stahl, J. (Investigador), Guedes, J. C. (Investigador), Faias, J. (Investigador), Wagner, L. (Investigador), Correia, I. (Investigador), Saldanha, M. F. (Investigador), Fontes, J. C. (Investigador), Modesto, L. (Investigador), Meira, M. (Investigador), Matos, M. G. D. (Investigador), Gouveia, M. (Investigador), Kozeniauskas, N. (Investigador), Bertani, N. (Investigador), Couzoff, P. (Investigador), Barroso, P. (Investigador), Encarnação, P. (Investigador), Raposo, P. (Investigador), Teles, P. (Investigador), Bastos, W. (Investigador), Bohnsack, R. (Investigador), Vale, R. C. D. (Investigador), Ferreira, R. (Investigador), Lloyd-Braga, T. (Investigador), Ramus, T. (Investigador), Colaço, V. H. (Investigador), Cavicchini, A. (Investigador), Parada, P. (Investigador), Pieters, R. (Investigador), Pinto, F. S. (Investigador), Colaço, V. H. (Investigador) & Venter, Z. (Investigador)
1/01/20 → 31/12/25
Projeto

Citação

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title = "Collateral requirements and corporate policy decisions",

abstract = "We challenge the theorized trade-off between risk management and investment due to collateral constraints. We compile a unique dataset of derivative transactions and collateral for U.S. public firms. Exploiting exogenous variation in cash-collateral, we observe significant effects on hedging but no impact on investment. Variations in PPE-collateral, instead, impact investment but show no association with hedging. Our findings suggest that a firm{\textquoteright}s assets should not be seen as interchangeable; they rather play distinct roles in the collateralization process.",

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author = "Kizkitza Biguri and Stahl, \{Jorg R.\}",

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AB - We challenge the theorized trade-off between risk management and investment due to collateral constraints. We compile a unique dataset of derivative transactions and collateral for U.S. public firms. Exploiting exogenous variation in cash-collateral, we observe significant effects on hedging but no impact on investment. Variations in PPE-collateral, instead, impact investment but show no association with hedging. Our findings suggest that a firm’s assets should not be seen as interchangeable; they rather play distinct roles in the collateralization process.

KW - Collateral

KW - Financial constraints

KW - Hedging

KW - Investment

KW - Liquidity

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Collateral requirements and corporate policy decisions

Resumo

Acesso ao documento

Outros arquivos e links

Impressão digital

Projetos

Políticas, mercado de crédito, e efeitos distributivos

CUBE: Católica Lisbon Research Unit in Business and Economics

Citação