We study the intensity of joint hedging of oil and gas prices by US petroleum firms. We aim to explain the rationale for and find the determinants of joint hedging, as well as its impact on firm market value, performance, and riskiness. Joint hedging that takes into account the interdependence...

This paper investigates the determinants of hedging strategy choice. We introduce different dynamic discrete choice frameworks with random effects to mitigate unobserved heterogeneity and state dependence. Using a new dataset on the hedging activities of 150 US oil and gas producers, we find...

This paper investigates how firms design the maturity of their hedging programs, and the real effects of maturity choice on firm value and risk. Using a new dataset on hedging activities of 150 U.S. oil and gas producers, we find strong evidence that hedging maturity is influenced by investment...