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Do entrepreneurs use cryptocurrency to hedge against their business risk?

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  • Bonaparte, Yosef

Abstract

This paper studies if entrepreneurs use cryptocurrency to hedge against business risk. Cryptocurrency is a newly emerging asset class that distinct from other traditional asset classes and less been analyzed from the entrepreneur's perspective. To implement the analyses, we address the endogeneity issue of being an entrepreneur using parents background and show that entrepreneurs prefer risk diversification hypotheses to hedge against their business risks.

Suggested Citation

  • Bonaparte, Yosef, 2024. "Do entrepreneurs use cryptocurrency to hedge against their business risk?," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002551
    DOI: 10.1016/j.frl.2024.105225
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    References listed on IDEAS

    as
    1. Jonathan Chiu & Thorsten V Koeppl, 2019. "Blockchain-Based Settlement for Asset Trading," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1716-1753.
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    6. Bonaparte, Yosef, 2022. "Time horizon and cryptocurrency ownership: Is crypto not speculative?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 79(C).
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    More about this item

    Keywords

    Cryptocurrency and entrepreneurs; Entrepreneurs; Hedging against business risk;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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