We use the classic agency model to derive a time-varying optimal hedge ratio for low-frequency time-series data: the type of data used by crop farmers when deciding about production and about their hedging strategy. Rooted in the classic agency framework, the proposed hedge ratio reflects the...

The lack of sufficient market depth particularly in many newly initiated futures markets results in relatively high hedging costs, and this inhibits the growth of futures contract volume. In this article the price path due to order imbalances is analyzed and a two-dimensional market depth...

With a constant new stream of financial services coming to the market, each often more exotic and complicated than the last, the financial services industry, which includes commodity derivatives exchanges, brokerage houses and banks providing price risk reduction services (the so-called hedging...

Building on recent advances in cooperative literature and practice, we conceive two key organizational features of cooperatives: cooperative structure (in terms of control, ownership, and cost/pricing policies resulting in traditional and re-engineered co-ops) as well as entrepreneurial...

Farms are increasingly being affected by policies that involve production rights. Because of fluctuations in the prices of these rights in the spot market, farmers face a price risk. Establishing a futures market might enable them to hedge against this price risk. Rights futures have some...

Most research on market orientation, innovation and performance is related to big enterprises and small and medium-sized enterprises (SMEs). In this study a model is developed to investigate the combined effect of market orientation and innovativeness on product innovation and company...

A study was carried out to analyze futures markets for tradable rights after a cash market was initiated. Futures markets can play a role in solving environmental problems by making the market for pollution rights (i.e. P2O5 rights) and agro rights (milk rights, sugar rights and P2O5 rights)more...