series patterns for currency risk management.Our approach is Bayesian where extensive use is made of Markov chainMonte Carlo … disturbancedensities) are investigated in relation to the hedging decision strategies.Consequently, we can make a distinction between …

empirical strategy to test whether oligopolistic frms use forward contracts for strategic motives, for risk-hedging, or for both …. An increase in the number of players weakens the incentives to sell forward for risk-hedging reasons.However, if …Building on a model of the interaction of risk-averse frms that compete in forward and spot markets, we develop an …

these instruments in the banking in- dustry which is heavily exposed to credit risk. However, while recent literature mainly …

hedging the Value at Risk is zero and the bank chooses to over-hedge. … new ways to banks to manage credit risk. In this paper we use a simple microeconomic model to show how a credit option of … the put type can be used by a bank's risk-averse management to hedge against credit risk. We find that under optimal …

speculative hedging is. Analysing tax-sensitivity of the corporate hedge shows that a higher risk in the first place may reduce …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 …

uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable …

: First we assume that hedging and output decisions are taken simultaneously. We show that hedging is just done for risk … output decisions. We show that hedging is used not only to manage the risk exposure but also as a strategic device …This paper studies a Cournot duopoly in international trade so that the firms are exposed to exchange rate risk. A …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal …

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 related to foreign direct investment do not matter if the …

. For example, the nature of monotonicity of the indifference curve depends on the underlying mean. Price hedging decisions … hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …