Publication: The effect of family ownership on corporate hedging: the case of Thailand
Issued Date
2017-07-12
Resource Type
ISSN
14664291
13504851
13504851
Other identifier(s)
2-s2.0-84991037420
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Mahidol University
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SCOPUS
Bibliographic Citation
Applied Economics Letters. Vol.24, No.12 (2017), 882-887
Suggested Citation
Sachapon Tungsong, Pornsit Jiraporn The effect of family ownership on corporate hedging: the case of Thailand. Applied Economics Letters. Vol.24, No.12 (2017), 882-887. doi:10.1080/13504851.2016.1237740 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/42473
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Title
The effect of family ownership on corporate hedging: the case of Thailand
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Abstract
© 2016 Informa UK Limited, trading as Taylor & Francis Group. We explore how corporate hedging decisions are affected by family ownership and control in Thailand. One crucial advantage of investigating this issue in Thailand is that hedging instruments became available only recently, long after families established their presence in the firm. Thus, endogeneity is much less likely. The evidence shows that family ownership by itself does not have a significant impact on the firm’s propensity to hedge. However, when family members have a presence on the board of directors, the firm is significantly more likely to engage in hedging activities. Furthermore, we find that the presence of institutional blockholders also increases the likelihood of hedging significantly. Our study is the first to examine the impact of family ownership and control on corporate hedging behaviour in an emerging market.