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 …

entails changes in real corporate actions. We document a positive relation between abnormal trading volume, future investment … expenditures, and fi nancing cash flows. This positive relation is not subsumed by the arrival of investment-related news or other …