' capital investment decisions. The efficiency of stock prices is determined by the weight firms attach to private information … and by the extent to which investment is predictable. Both factors attract informed trading and lead to more revealing …

this theory have not yet been directly tested. I investigate the relationship between derivative cash flows and investment …A crucial argument for motivating hedging is that it supports corporate investment when internal cash flows are … using hand-collected data from the oil and gas industry between 2000 and 2015. The data supports the theory. On average …