Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Table 2:
Tests of Mean Differences between Derivative Users and Non-Users 
Variable Prediction 
Users 
Non-Users 
T-Stat 
Exposure 
UFloat U>NU 
0.41 
0.18 
-5.43*** 
LSales U>NU 
6.40 
5.00 
-6.69*** 
BM Ratio 
U0.95 
1.26 
1.91** 
ICR 
UForeign U>NU 
0.06 
0.01 
-3.77*** 
Quick 
UExposure is the absolute value of the coefficient from the Augmented Capital Asset Pricing Model described in Equation 1. Float is the ratio of 
floating rate debt/total long-term debt. LSales is measured as the log of Sales. BM Ratio is the book-to-market ratio measured as the book value 
of equity/market value of equity. The book-to-market ratio is winsorized for two extreme observations. ICR represents the interest coverage 
ratio measured as income before depreciation/interest expense. Foreign is the ratio of foreign sales/total sales. Quick is the sum of cash, short-
term investments and accounts receivables/current liabilities