@techreport{1f9fea41e566499297ee8e10031520ad,
title = "CEO age, risk incentives, and hedging instrument choice",
abstract = "We analyze how firms hedge in the oil and gas industry. Our main finding is that CEO age determines hedging behavior. The probability of being a hedger as well as the use of linear hedging strategies decreases with CEO age. These results are consistent with an argument that financial distress, which sends a negative signal of managerial ability, is relatively more costly to younger CEOs. We also investigate the vega-theory of hedging instrument choice, finding some support for a negative relationship between vega and a) the use of derivatives and b) hedging strategies that include the sale of call options.",
keywords = "risk management, derivative, hedging instrument, vega, CEO age",
author = "Ettore Croci and H{\aa}kan Jankensg{\aa}rd",
year = "2014",
language = "English",
volume = "3",
series = "Knut Wicksell Working Paper Series, Lund University",
publisher = "Knut Wicksell Centre for Financial Studies, Lund University",
type = "WorkingPaper",
institution = "Knut Wicksell Centre for Financial Studies, Lund University",
}