Corporate governance and hedging : a study on New Zealand firms.

Abstract

The purpose of this research project is to investigate whether there is a relationship between corporate governance and the level of hedging, and if so, whether it is a positive or negative relationship. We have used the firms listed on the New Zealand Stock Exchange (NZX) for our data sample. However, we have excluded all financial institutions and property firms as well as firms that have no foreign exchange exposure from our sample. Our study concentrates on the annual reports of the sample firms over a 3-year period, from 2003 to 2005.