Unraveling the Dynamics of Derivative-based Hedging: Does it Impact the Cost of Debt?
Purpose: To investigate whether a firm's hedging activities have an impact on the cost of debt. Moreover, the study aims to investigate any differences between the three categories of risk: foreign exchange rate risks (FX), interest rate risks (IR) and commodity price risks (CM) as well as the sources of benefit from hedging. Methodology: The study is conducted on a panel data set, and the ut