Working Capital Management, the Credit Crisis, and Hedging Strategies: Canadian Evidence. (16th November 2015)

• Record Type: Journal Article
• Authors: Kieschnick, Robert; Rotenberg, Wendy
• Is Part Of: Journal of international financial management & accounting. Volume 27:Number 2(2016:Summer)
• Page Start: 208
• Page End: 232
• Publication Date: 2015-11-16
• Subjects: International business enterprises -- Finance -- Periodicals; International finance -- Periodicals; Managerial accounting -- Periodicals; Electronic journals; 658.15
• DOI: 10.1111/jifm.12049
• Languages: English
• ISSNs: 0954-1314

Abstract

Abstract: This study uses a sample of Canadian natural resource firms during the global financial crisis (GFC) of 2007–2008 to examine the influence of firm hedging strategies on their working capital management. Our evidence implies that increased cash holdings and derivatives are alternative ways of hedging risk, and also provides another perspective on the U.S. "trapped cash" controversy as our sample firms are not R&D intensive and do not face the same tax regime as U.S. multinationals.