empirical viewpoint. Previous research analyzed portfoliotheoretical issues, mispricing patterns, and counterparty risk. This …, we use both a risk neutral and a loss averse value function. Individual preferences prove relevant especially for those …

Many firms face product price risk in foreign currency, uncertain costs in home currency and exchange rate risk. If … prices and exchange rates in different countries interact, natural hedges of foreign exchange risk might result. If the … important implications for the design of risk management strategies. …

realistic decision structure than the one usually used in this literature, we find that risk averse agents will not buy forwards …

overall market risk vis-?-vis currency risk). The main innovation lies in testing implications of exchange rate adjustment … costs (hedging costs) for firm values and exposure. Based on time series data of German DAX companies, DM/ dollar rates and …

) continues to be prevalent makes MGRM?s strategy of hedging long-term supply commitments with short-dated futures contracts look …