| Popis: |
Hedging price risk has become an increasingly popular activity around the world. This paper is devoted to analyze the main determinants that help Moroccan cereal importers use hedging instruments. Based on an application of Heckman model (1979), our empirical approach aims at determining the behavior of import companies face to price risk. The results show that firm size is a key determining factor in hedging decisions. More precisely, our findings suggest that the turnover of the company is positively related to the purchase of hedging contracts. The same relation is noted between risk aversion, risk premium, risk perception and adopted import pattern (self or grouped), on one hand, and using futures contracts, on the other hand. Surprisingly, variables such as total import volume, risk management structure or selling patterns are either not highly significant or not significant at all. These results based for the first time in Morocco, at our knowledge, open the door to further investigations that aim at better understand the underpinnings of Moroccan cereal importers behavior face to price risk at the world market. |
