relatively understudied. We study firms' currency risk exposure and their hedging choices by employing a unique dataset covering … the universe of FX derivatives transactions in Chile since 2005, together with firm-level information on sales …, international trade, trade credits and foreign currency debt. We uncover four novel facts: (i) natural hedging of currency risk is …

on mutual fund currency derivatives and document that around 90% of U.S. international fixed income funds use currency …

incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important …

, but not at long horizons. At horizons of several years, complete hedging not only does not lower return variance, it … apparent causes, and investigates their implications for hedging practice …

risk management measures--financial and operational hedging, the choice of invoice currency and the price revision strategy … by both financial and operational hedging. Third, yen invoicing reduces foreign exchange exposure. These findings …

of our carry trades are not significantly different from unconditional betas. Hedging with options reduces but does not …

We study a firm that justifies its novel use of equity derivatives as a cash-flow hedging strategy. Our purpose is to … hedging concepts articulated by Froot, Scharfstein and Stein (1993). In applying the theory to practice, there are lessons for …

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