Zorzi, Robin; Friedl, Bettina - In: Review of Pacific Basin Financial Markets and Policies … 17 (2014) 04, pp. 1450024-1
In practice, it is observable that firms tend to smooth periodical earnings because periodical earnings are considered by capital markets as a proxy for firms' success, and therefore, are often operationalized by the respective compensation plans for managers. Considering financial hedging...