We study how risk management through hedging impacts firms and competition among firms in the life insurance industry … hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also … face costly external finance increase hedging after staggered state-level financial reform that reduces the costs of …

We explore how trade credit complements cash holdings in product market competition. First, similar to cash to cash … show that both trade credit and cash holdings are strategically valuable in product market competition and their valuations … credit practices and product market competition. We also show that the value of trade credit depends on whether suppliers are …

sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …), however, play a larger role for constrained firms with the effects being strongest in case of low hedging needs. Interestingly …, constrained firms with low hedging needs are found to employ more debt to finance their investment opportunities and build up …

We study the implications of financial hedging for corporate cash policy. Using a web crawler program to collect data … on the use of financial derivatives, we find that firms with financial hedging programs have smaller cash reserves but a … higher value of cash than firms without hedging contracts in place. Our empirical results are robust when controlling for …

The paper tests the effect of competition on bank risk-taking for a sample of up to 800 banks worldwide over the period … 1995-2010. Following the theoretical literature on bank competition and risk more closely than previous empirical research …, we measure competition at the bank level and separate the effects of competition in deposit and loan markets. We also …

of risk management failures to be the trifecta of (1) “boom” markets, (2) time-based competition, and (3) firms in which …