Gay, Gerald D.; Lin, Chen-Miao; Smith, Stephen D. - In: Journal of Banking & Finance 35 (2011) 6, pp. 1491-1506
We investigate the relation between derivatives use and corporations' cost of equity capital. Using a large sample of non-financial firms, we compute and analyze (i) the relative cost of equity of firms that use derivatives and those that do not; and (ii) the change in cost of equity experienced...
