Purpose -Based on basic financial models and reports in the business press, exchange rate movements are generally believed to affect the value of nonfinancial firms. In contrast, the empirical research on nonfinancial firms typically produces fewer significant exposures estimates than...

Purpose – In the presence of capital market imperfections, risk management at the enterprise level is apt to increase the firm's value to shareholders by reducing costs associated with agency conflicts, external financing, financial distress, and taxes. The purpose of this paper is to provide...

Purpose – This paper investigates the motivations and practice of nonfinancial firms with regard to using options in their risk management activities. Design/methodology/approach - The paper provides a comprehensive account of the existing empirical evidence and analyzes data on the use of...