investors with hedging demands. In support of this explanation we find that the CDS-lag and its news-specificity are related to … various firm-level proxies for hedging demand in the cross-section as well measures for economy-wide informational asymmetries …

located in France, Germany, the U.K., and the U.S. under different assumptions about currency hedging. We compare these … strong impact on the degree of underinvestment whereas less political risk increases the degree of over-investment. …

As past research suggest, currency exposure risk is a main source of overall risk of international diversified … portfolios. Thus, controlling the currency risk is an important instrument for controlling and improving investment performance … of international investments. This study examines the effectiveness of controlling the currency risk for international …

In this paper we investigate whether the currency risk is priced in international stock markets. We suggest a … that the currency risk is priced in international stock markets, once asymmetries in volatility are taken into account. The …

Surveys of corporate risk management document that selective hedging, where managers incorporate their market views … strength to withstand the additional risk from market timing. We study the practice of selective hedging in a 10-year sample of … into firms' hedging programs, is widespread in the U.S. and other countries. Stulz (1996) argues that selective hedging …