Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach

Abstract

A James Gaskin Excel Macro Analysis is performed to determine the reliability of our scales, and a 3-way parallel mediation using the Andrew Hayes’ PROCESS model is applied to test the formulated hypotheses. Results show that hedging has a direct effect on firms’ survival; firms’ size and age individually do not strongly influence these effects, but a combination of the two does. We, therefore, concluded that while the hedging-survival effect exists on all forms of hedging, the practice of hedging is consequential for firms on the premise of their ages and numbers of employees.