Abstract
This article constructs triple-difference tests around shifts in the supply of risk management instruments available to agricultural producers to reveal a positive relation between risk management and productivity. This relation is more robust when producers adopt instruments with payoffs linked to group performance and weaker when payoffs are linked to individual performance. Additionally, productivity is particularly high among risk-managing producers in counties containing high levels of bank deposits, a proxy for access to finance. Overall, this article illuminates the relation between hedging and real firm outcomes as well as the interaction between access to finance and firms' risk management choices.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 419-440 |
| Number of pages | 22 |
| Journal | Journal of Financial Economics |
| Volume | 109 |
| Issue number | 2 |
| DOIs | |
| State | Published - Aug 1 2013 |
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All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics and Econometrics
- Strategy and Management
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Does risk management matter? Evidence from the U.S. agricultural industry. / Cornaggia, Jess.
In: Journal of Financial Economics, Vol. 109, No. 2, 01.08.2013, p. 419-440.Research output: Contribution to journal › Article
TY - JOUR
T1 - Does risk management matter? Evidence from the U.S. agricultural industry
AU - Cornaggia, Jess
PY - 2013/8/1
Y1 - 2013/8/1
N2 - This article constructs triple-difference tests around shifts in the supply of risk management instruments available to agricultural producers to reveal a positive relation between risk management and productivity. This relation is more robust when producers adopt instruments with payoffs linked to group performance and weaker when payoffs are linked to individual performance. Additionally, productivity is particularly high among risk-managing producers in counties containing high levels of bank deposits, a proxy for access to finance. Overall, this article illuminates the relation between hedging and real firm outcomes as well as the interaction between access to finance and firms' risk management choices.
AB - This article constructs triple-difference tests around shifts in the supply of risk management instruments available to agricultural producers to reveal a positive relation between risk management and productivity. This relation is more robust when producers adopt instruments with payoffs linked to group performance and weaker when payoffs are linked to individual performance. Additionally, productivity is particularly high among risk-managing producers in counties containing high levels of bank deposits, a proxy for access to finance. Overall, this article illuminates the relation between hedging and real firm outcomes as well as the interaction between access to finance and firms' risk management choices.
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UR - http://www.scopus.com/inward/citedby.url?scp=84878964732&partnerID=8YFLogxK
U2 - 10.1016/j.jfineco.2013.03.004
DO - 10.1016/j.jfineco.2013.03.004
M3 - Article
VL - 109
SP - 419
EP - 440
JO - Journal of Financial Economics
JF - Journal of Financial Economics
SN - 0304-405X
IS - 2
ER -