Nourani, MohammadChen, Fu-ChiangGurrib, IkhlaasKweh, Qian LongWu, Yun-Hao2021-07-182021-07-18© 20212021Nourani, M., Chen, F., Gurrib, I., Kweh, Q. L., & Wu, Y.H. (2021). Hedging strategies and performance of the US financial holding companies: A dynamic frontier analysis. International Journal of Business Excellence, 24(3), 295-320. https://doi.org/10.1504/IJBEX.2021.11583517560047https://doi.org/10.1504/IJBEX.2021.115835http://hdl.handle.net/20.500.12519/414This article is not available at CUD collection. The version of scholarly record of this article is published in International Journal of Business Excellence (2021), available online at: https://doi.org/10.1504/IJBEX.2021.115835Globalisation led to dynamic developments in the area of financial innovation. The main object of this study is to shed light into the relationship between hedging strategies and operational performance. We initially employed a dynamic data envelopment analysis model to incorporate carry-over items in order to assess the long-term operating performance of the top 50 US financial holding companies (FHCs) over the period 2005-2009. We then evaluated the operating performance under four different hedging measures and eight sub-industries. Findings show that significant differences exist among sub-industries on the overall mean operating performance of the US FHCs, as the financial situation changes over time. Empirically, we also provide evidence that the choice of an appropriate hedging strategy matters when it comes to operating performance. Overall, we support that choosing a suitable hedging strategy is crucial for FHCs even after a series of structural reforms following the latest global financial crisis. Copyright © 2021 Inderscience Enterprises Ltd.enPermission to reuse abstract has been secured from Inderscience PublishersData envelopment analysisDEADSBMDynamic slack-based measuresFHCFinancial holding companiesHedging strategiesArticleCopyright : © 2021 Inderscience Enterprises Ltd.