Recently, financial derivatives have gained increased attention due to the claims accusing them of being a major cause of the latest financial crisis. In an attempt to analyze their role recent studies have been questioning the relationship between capital structure and the use of financial derivatives. It has been found that the relationship between capital structure and financial derivatives is endogenous and their role is more complex than was expected. This paper may contribute to the existing literature by considering some factors that may indirectly affect the use of financial derivatives such as cultural, institutional and behavioral differences.
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