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dc.contributor.advisorKlasa, Sandyen
dc.contributor.authorAlkhamis, Mohammad Baderen
dc.creatorAlkhamis, Mohammad Baderen
dc.date.accessioned2016-11-03T23:44:49Z
dc.date.available2016-11-03T23:44:49Z
dc.date.issued2016
dc.identifier.urihttp://hdl.handle.net/10150/621281
dc.description.abstractFirms operating in the United States face important litigation risk, yet little is known on how this risk affects financial decisions. I use a natural experiment to explore the effect of litigation risk on firms' hedging behavior. I find that firms are more likely to use financial derivatives following an exogenous increase in litigation risk. This finding is stronger in the subset of firms with higher distress costs, lower credit ratings, and higher legal concerns. My results imply that litigation risk can at least partially explain the use of financial derivatives.
dc.language.isoen_USen
dc.publisherThe University of Arizona.en
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en
dc.subjectFinancial Derivativesen
dc.subjectHedgingen
dc.subjectLitigation Risken
dc.subjectManagementen
dc.subjectCorporate Risk Managementen
dc.titleLitigation Risk and Hedgingen_US
dc.typetexten
dc.typeElectronic Dissertationen
thesis.degree.grantorUniversity of Arizonaen
thesis.degree.leveldoctoralen
dc.contributor.committeememberKlasa, Sandyen
dc.contributor.committeememberAradhyula, Satheeshen
dc.contributor.committeememberBonaime, Aliceen
dc.contributor.committeememberWilliams, Ryanen
dc.description.releaseRelease after 28-Jun-2017en
thesis.degree.disciplineGraduate Collegeen
thesis.degree.disciplineManagementen
thesis.degree.namePh.D.en
refterms.dateFOA2017-06-28T00:00:00Z
html.description.abstractFirms operating in the United States face important litigation risk, yet little is known on how this risk affects financial decisions. I use a natural experiment to explore the effect of litigation risk on firms' hedging behavior. I find that firms are more likely to use financial derivatives following an exogenous increase in litigation risk. This finding is stronger in the subset of firms with higher distress costs, lower credit ratings, and higher legal concerns. My results imply that litigation risk can at least partially explain the use of financial derivatives.


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