Interaction effects of corporate hedging activities for a multi-risk exposure: evidence from a quasi-natural experiment

摘要: This study analyzes the interaction effects of corporate hedging activities electric utility firms facing a manifold risk exposure consisting several market price risks. We employ 16 recent introductions markets for trading electricity derivatives as quasi-natural experiment. The results show that utilities generally favor domestic derivatives, which might be reduced to their usual high power and related good predictability prices. As consequence, output eliminates major part overall risk. Further, we identify spillover hedging: sensitivities input commodity prices decrease, while foreign exchange rates interest increase. Furthermore, increases debt capacities availability internal funds. These are relevant firms, operators, policy makers, since selective presence let financing policies globally diverge.