Derivatives Supply and Corporate Hedging: Evidence from the Safe Harbor Reform of 2005

2017 ◽  
Author(s):  
Erasmo Giambona ◽  
Ye Wang
Keyword(s):  
Safe Harbor ◽  
Corporate Hedging

Derivatives Supply and Corporate Hedging: Evidence from the Safe Harbor Reform of 2005

2020 ◽  
Vol 33 (11) ◽  
pp. 5015-5050
Author(s):  
Erasmo Giambona ◽  
Ye Wang
Keyword(s):  
Financial Distress ◽  
Operating Performance ◽  
Causal Link ◽  
Regulatory Change ◽  
Supply Side ◽  
Safe Harbor ◽  
Corporate Hedging ◽  
Nonfinancial Firms

Abstract This article analyzes the importance of supply-side fluctuations for corporate hedging. To establish a causal link, we exploit a regulatory change that allows derivatives counterparties to circumvent the Bankruptcy Code’s automatic stay: the Safe Harbor Reform of 2005. Following the reform-induced expansion in the availability of derivatives, fuel hedging by airlines nearing financial distress (those that benefited most from the reform) significantly increased in comparison with financially sound airlines. We find that the hedging propensity similarly increased in a general sample of nonfinancial firms. In line with theory, we also find that operating performance increased for the affected firms.

Strategic Corporate Hedging

2016 ◽  
Author(s):  
Caleb Cox ◽  
Arzz Karam ◽  
Matthias Pelster
Keyword(s):  
Corporate Hedging

When are Firms Sued for Qualitative Disclosures? Implications of the Safe Harbor for Forward-Looking Statements

2019 ◽  
Vol 95 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Richard A. Cazier ◽  
Kenneth J. Merkley ◽  
John S. Treu
Keyword(s):  
Legal Liability ◽  
Safe Harbor ◽  
Litigation Risk ◽  
Securities Laws ◽  
Forward Looking

ABSTRACTPrior research finds that positive tone in firms' qualitative disclosures increases the risk of shareholder lawsuits. However, federal securities laws provide a safe harbor intended to shield firms' forward-looking statements from legal liability. One implication of this safe harbor is that litigation risk potentially varies between qualitative forward- and non-forward-looking statements. Consistent with this implication, we find that positive tone in forward-looking qualitative statements is significantly less related to the likelihood of subsequent litigation than is positive tone in non-forward-looking qualitative statements. On average, we fail to find a significant association between qualitative forward-looking statements and subsequent litigation. We do find evidence, however, that positive tone in qualitative forward-looking statements relates positively to subsequent litigation in two U.S. circuits in which court rulings reduced safe harbor protections for forward-looking statements. Overall, our results are consistent with the safe harbor effectively shielding firms' qualitative forward-looking statements from litigation risk.

Industry tournament incentives and corporate hedging policies

2021 ◽  
Author(s):  
Gunratan Lonare ◽  
Ahmet Nart ◽  
Ahmet M. Tuncez
Keyword(s):  
Corporate Hedging

scholarly journals Rhesus iPSC Safe Harbor Gene-Editing Platform for Stable Expression of Transgenes in Differentiated Cells of All Germ Layers

2017 ◽  
Vol 25 (1) ◽  
pp. 44-53 ◽  
Author(s):  
So Gun Hong ◽  
Ravi Chandra Yada ◽  
Kyujoo Choi ◽  
Arnaud Carpentier ◽  
T. Jake Liang ◽  
...  
Keyword(s):  
Gene Editing ◽  
Stable Expression ◽  
Safe Harbor ◽  
Germ Layers ◽  
Differentiated Cells

scholarly journals Utilization of the AAVS1 safe harbor locus for hematopoietic specific transgene expression and gene knockdown in human ES cells

2014 ◽  
Vol 12 (3) ◽  
pp. 630-637 ◽  
Author(s):  
Amita Tiyaboonchai ◽  
Helen Mac ◽  
Razveen Shamsedeen ◽  
Jason A. Mills ◽  
Siddarth Kishore ◽  
...  
Keyword(s):  
Transgene Expression ◽  
Es Cells ◽  
Gene Knockdown ◽  
Safe Harbor ◽  
Human Es Cells
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