The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment …, but not their leverage, by hedging. However, we also find that firms with few investment opportunities use derivatives to … two decisions are being made. We argue that the way in which hedging affects the firms’ financing and investing decisions …

The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment …, but not their leverage, by hedging. However, we also find that firms with few investment opportunities use derivatives to … two decisions are being made. We argue that the way in which hedging affects the firms’ financing and investing decisions …

sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …, constrained firms with low hedging needs are found to employ more debt to finance their investment opportunities and build up …We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates …