Unveiling the hidden patterns: Non-linear determinants of natural hedging

IF 1 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2025-09-01 DOI:10.1016/j.iimb.2025.100598

Anureet Saharan, Madhumathi Rajendran

引用次数: 0

Abstract

We examine whether the relationship between natural hedging and its determinants is non-linear. We develop a novel tridimensional index for measuring the natural hedging of a firm through international diversification. Applying a panel quantile approach with non-additive fixed effects, we categorise firms into subgroups (parent-controlled, jointly-controlled, and locally-controlled) based on the level of international diversification. Using a sample of 1950 listed Indian firms spanning 1991–2022 (18,113 firm-years), we find that the relationship between natural hedging and its determinants varies with changes in the control structure. The non-linearity in the relationship is due to the interconnection between natural hedging and the firm’s operations.

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揭示隐藏的模式：自然对冲的非线性决定因素

我们研究了自然对冲与其决定因素之间的关系是否是非线性的。我们开发了一个新的三维指标来衡量公司通过国际多元化的自然对冲。采用具有非加性固定效应的面板分位数方法，我们根据国际多元化水平将公司分为子组（母公司控制、联合控制和本地控制）。利用1950家印度上市公司1991-2022年（18113个公司年）的样本，我们发现自然套期保值及其决定因素之间的关系随着控制结构的变化而变化。这种关系的非线性是由于自然套期保值与企业经营之间的相互联系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.