Purpose – The purpose of this paper is to investigate factors that safeguard or hinder the proper use of derivatives, with evidence from active users and controllers of derivatives. Design/methodology/approach – An online panel of 420 users and controllers of derivatives responded to a...

Purpose – Whether stock returns are linked to exchange rate changes and whether foreign exchange risk is priced in a domestic context are less conclusive and thus still subject to a great debate. The purpose of this paper is to provide new empirical evidence on these two inter-related issues,...

Purpose – This paper aims to carry out a comprehensive analysis of the influence of interest rate risk on Spanish firms at the industry level. Design/methodology/approach – The methodology employed has its origin in the two-index linear regression model proposed by Stone. This traditional...

Purpose – The purpose of this paper is to explore risk management models applied to electric power markets. Several Value-at-Risk (VaR) models are applied to day-ahead forward contract electric power price data to see which, if any, could be best used in practice. Design/methodology/approach...

Purpose – Strategic cost structure choices determine how firms divide operating costs between fixed and variable components, and therefore have important implications for financial performance. The purpose of this paper is to examine the effect of operating leverage on equity Betas when...

Purpose – The purpose of this paper is to examine the impact of trades by informed traders and uninformed traders on the asymmetric volatility relation, a stylized fact that has long been puzzling financial economists. Avramov, Chordia, and Goyal's hypothesized that asymmetric volatility,...

Purpose -The purpose of this paper is to study gender diversity on the board of directors and the relation to risk management and corporate performance as measured by the variability of stock market return. Design/methodology/approach - The sample consists of companies from the RiskMetrics...

Purpose - To evaluate various hedge programs designed to minimize the risk of an extreme monthly gas bill subject to a pre-determined hedge program budget. Design/methodology/approach -Historical data were collected on natural gas spot and futures prices. Also, theoretical options prices were...

Purpose –This paper seeks to show optimal strategies for firms to cope with analysis and management of risks. Design/methodology/approach - Empirical and experimental studies on gender differences in risk analysis and risk management are reported and assessed. Findings - Women appear less...

Purpose – The purpose of this paper is to investigate the connection between the accrual quality and the growth/value characteristics (and their return premia) at firm level. Design/methodology/approach – The paper employs a battery of univariate and multivariate cross-sectional tests....