Firm value and the use of financial derivatives: Evidence from developed countries
Why this work is in the frame
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
Bibliographic record
Abstract
Abstract This paper examines whether financial derivatives usage impacts firm value in seven developed countries from 2007 to 2016. We rely on textual analysis to identify derivatives users and address the potential reverse causality problem through propensity score matching and the difference‐in‐differences approach. Empirical findings suggest that the use of derivatives has a negative effect on firm value. Interestingly, we observe asymmetric valuation effects for specific countries when comparing firms that adopt derivatives with those that abandon them. US, UK, and Australian firms adopting derivatives experience a significant decrease in their valuation. Contrary to expectations, this adverse effect diminishes and may become insignificant at best when firms choose to abandon derivatives. Furthermore, most of the significant value effects disappear when using the industry relative valuation measure.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.003 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.001 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.002 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it