Corporate Governance and Corporate Hedging: French Evidence

This paper studies the relationship between corporate governance and corporate hedging over a sample of 320 listed French non financial firms. We use Probit and Tobit models to check our hypothesis. The results show that corporate hedging is related to institutional ownership, stock-options, leverage, liquidity and firm size. However, there is no evidence to suggest that managerial ownership, ownership concentration and board of directors affect the corporate hedging.