of hedging on firm value and performance. We show that interest rate risk hedging is negatively related to firm value and … performance and that this adverse relation is caused by the use of very popular and yet inefficient hedging strategies which rely … on options and swaps contracts. The high demand for the above inefficient hedging strategies is very intriguing because …

the use of financial derivatives reduces both total risk and systematic risk. The effect of derivative use on firm value …Using a large sample of non-financial firms from 47 countries, we examine the effect of derivative use on firm risk and … value. We control for endogeneity by matching users and nonusers on the basis of their propensity to use derivatives. We …