This paper investigates whether the NYSE and Sarbanes Oxley Act requirements for the independence and the financial knowledge of directors sitting on the board and the audit committee improve corporate hedging decisions. Our original hand collected dataset allows multiple definitions for...

This paper provides an independent assessment of the effects of the New York Stock Exchange (NYSE) and the Sarbanes Oxley act (SOX) requirements of independence and financial literacy on the use of derivatives for hedging purposes. Our original hand collected database on directors' university...

Structured finance is often mentioned as the main cause of the latest financial crisis. We argue that structured finance per se did not trigger the last financial crisis. The crisis was propagated around the world because of poor risk management such as agency problems in the securitization...

The new NYSE rules for corporate governance require the audit committee to discuss and review the firm's risk assessment and hedging strategies. They also put additional requirements for the composition and the financial knowledge of the directors sitting on the board and on the audit committee....

We take up the question of potential conflicts between the objectives of risk management policies and those connected with maximization of the firm's value. This question is a timely one, since many firms have a special committee devoted to risk management - banks and insurance companies in...

This paper tests the effects of the independence and financial knowledge of directors on risk management and firm value in the gold mining industry. Our original hand-collected database on directors' financial education, accounting background, and financial experience allows us to test the...

Operational losses are true dangers for banks since their maximal values to signal default are difficult to predict. This risky situation is unlike default risk whose maximum values are limited by the amount of credit granted. For example, our data from a very large US bank show that this bank...

The new NYSE rules for corporate governance require the audit committee to discuss and review the firm's risk assessment and hedging strategies. They also put additional requirements for the composition and the financial knowledge of the directors sitting on the board and on the audit committee....