Derivatives Usage in Risk Management by Non-Financial Firms: Evidence from Greece

Kapitsinas, Spyridon

Derivatives Usage in Risk Management by Non-Financial Firms: Evidence from Greece

MPRA Paper from University Library of Munich, Germany

Abstract: This paper presents evidence on the use of derivative contracts in the risk management process of Greek non-financial firms. The survey was conducted by sending a questionnaire to 110 non-financial firms and its results are compared with the findings of previous surveys: 33.9% of non-financial firms in Greece use derivatives, mainly to hedge their exposure to interest rate risk. The major source of concern for derivatives users is the accounting treatment of the contracts and the disclosure requirement. Non-financial firms in Greece use sophisticated methods of risk assessment and report having a documented corporate policy with respect to the use of derivatives, while at the same time consider the domestic economic environment not to be favorable of derivatives usage. Firms that chose not to use derivatives responded that they do so mainly because of insufficient exposure to risks.

Keywords: risk management; financial risk; derivatives; corporate finance; Greece (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2008-09-30
New Economics Papers: this item is included in nep-cfn, nep-fmk and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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