Hahnenstein, Lutz; Köchling, Gerrit; Posch, Peter N. - In: Journal of Business Finance & Accounting 48 (2021) 3-4, pp. 718-741
We present a new approach to test empirically the financial distress costs theory of corporate hedging. We estimate the ex-ante expected financial distress costs, which serve as a starting point to construct further explanatory variables in an equilibrium setting, as a fraction of the value of...