Cover -- Title Page -- Copyright -- Contents -- Foreword -- Introduction -- General Presentation -- Contents of the Book -- Acknowledgments -- General References -- Chapter 1 Risk Management: Definition and Historical Development -- 1.1 History of Risk Management -- 1.2 Milestones in Financial...

This paper investigates the effect of corporate risk management on dividend policy. We extend the signaling framework of Bhattacharya (1979) by including the possibility of hedging the future cash flow. We find that the higher the hedging level, the lower the incremental dividend. This result is...