On the Market Timing of Hedging: Evidence from U.S. Oil and Gas Producers

摘要: Using a hand-collected data, we provide evidence of extensive use commodity derivative in hedging among U.S. oil and gas producers. We find large variations intensity profits while on average they generate significant positive profits. The relate positively to the hedging. further decompose hedge ratio into two components: pure component market timing component. that strongly also identify group firms can consistently from their activities. Among who actively change positions, winners tend be larger firms. outcome does not increase equity beta tends decrease beta. are exclusive for transactions producers, do profit interest rate or foreign exchange transactions.