| dc.description.abstract | Using derivative usage data from 185 firms listed on the Oslo Exchange during the 2007
to 2021 time period, we find a positive correlation between derivative usage and firm
value. However, the significance varies across derivative types and firm value quantile
distributions. The derivative instruments exhibit varying associations with firm values
that are mostly positive, though interest rate cap derivatives generally show negative
associations. Also, there are dynamic associations between derivative usage and firm value
over different time intervals. These results are robust to dynamic difference-in-difference
estimations, an econometric framework that reduces potential endogeneity problems and
explains causality. We conclude that derivative usage has, in general, a positive lagged
impact on firm value for Norwegian-listed firms that are exposed to the relevant risks. | en_US |
