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Fuchs, Frank; Broll, Udo; Wahl, Jack E. - 2006

Bei Unsicherheit über die zukünftige Entwicklung des Wechselkurses sind international tätige Unternehmen nicht indifferent in Bezug auf die Wahl der Währung ihrer Preissetzung. Denn die bei der Fakturierung festgelegte Währung kann die Ertragssituation des Unternehmens erheblich...

Persistent link: https://www.econbiz.de/10010296802

Differential Taxation and Corporate Futures-Hedging

Wahl, Jack E.; Broll, Udo - 2007

Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and, therefore, the incentive for hedging reduces. We...

Persistent link: https://www.econbiz.de/10010296818

The New Basel Accord and the Nature of Risk: A Game Theoretic Perspective

Siebe, Wilfried; Milde, Hellmuth; Broll, Udo; Bieta, Volker - 2007

changing over to active risk control. But, if risk management is no longer a simple "game against nature", if all agents … – game theory is a useful set of tools for better understanding different risk settings. Embedded in a short history of the … Basel Accord in this article we introduce some basic ideas of game theory in the context of rating procedures in accordance …

Persistent link: https://www.econbiz.de/10010296819

Licensing by a monopolist and unionized labor market

Mukherjee, Soma; Broll, Udo; Mukherjee, Arijit - 2007

We show that a monopolist final goods producer may find it profitable to create competition by licensing its technology if the input market is imperfectly competitive. With a centralized union, we show that licensing by a monopolist is profitable under both uniform and discriminatory wage...

Persistent link: https://www.econbiz.de/10010296821

The Competitive Firm Under Price Uncertainty: The Role of Information and Hedging

Broll, Udo; Eckwert, Bernhard - 2007

We study the impact of transparency in a commodity market on the decision problem of a competitive firm under price uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable signals which are correlated with the random...

Persistent link: https://www.econbiz.de/10010296824

Barriers to Diversification and Regional Allocation of Capital

Broll, Udo; Roldán-Ponce, Antonio; Wahl, Jack E. - 2007

In order to evaluate the allocational effectiveness of regional policy when harmonizing regional economic conditions firms? preferences play a pivot role. If harmonization hinders risk diversification of the firm, then instead of regional diversification of capital agglomeration of capital...

Persistent link: https://www.econbiz.de/10010296826

Export production under exchange rate uncertainty

Broll, Udo; Gilroy, B. Michael; Lukas, Elmar - 2008

Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary...

Persistent link: https://www.econbiz.de/10010300614

Export production, hedging exchange rate risk: the duopoly case

Broll, Udo; Wahl, Jack E.; Wessel, Christoph - 2008

This paper studies a Cournot duopoly in international trade so that the firms are exposed to exchange rate risk. A hedging opportunity is introduced by a forward market where the foreign currency can be traded on. We investigate two settings: First we assume that hedging and output decisions are...

Persistent link: https://www.econbiz.de/10010300615

Modelling information and hedging: the exporting firm

Broll, Udo; Eckwert, Bernhard - 2009

The paper examines the economic role of modelling information on the decision problem of an exporting firm under exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal conveys more information about the random foreign exchange...

Persistent link: https://www.econbiz.de/10010300624

Mitigation of foreign Direct investment risk and hedging

Wahl, Jack E.; Broll, Udo - 2009

Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool of risk mitigation. We show that country risk assessments...

Persistent link: https://www.econbiz.de/10010301354