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Hedging with regret
Korn, Olaf; Rieger, Marc Oliver - 2016
This paper investigates corporate hedging under regret aversion. Regret-averse firms try to avoid deviations of their … hedging policy from the ex post best policy, an intuitive consideration if one has to justify one's decisions afterward. The … aversion reduces the hedging of price risk to avoid large regret in the case of increasing prices. The results show that regret …
Persistent link: https://www.econbiz.de/10011539574
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Asymmetric information and roll-over risk
König, Philipp; Pothier, David - 2014
How do banks choose their debt maturity structure when credit markets are subject to information frictions? This paper proposes a model of equilibrium maturity choice with asymmetric information and endogenous roll-over risk. We show that in the presence of public signals about firms'...
Persistent link: https://www.econbiz.de/10010332848
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Determinants of behaviour of working capital requirements of BSE listed companies: An empirical study using co-integration techniques and generalised method of moments
Sharma, Rakesh Kumar; Bakshi, Apurva; Chhabra, Sheena - In: Cogent Economics & Finance 8 (2020) 1, pp. 1-30
The paper investigates the determinants of working capital to forecast the future requirement of working capital of BSE-listed top 150 companies in India. The study is conducted by collecting the data of 150 top-performing BSE listed companies for the time period of 2009-2017. The ten firm-level...
Persistent link: https://www.econbiz.de/10012657565
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Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information
Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - 2007
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit rationing, and other inefficiencies that arise when borrowers hold ex ante private information. There is no clear empirical evidence regarding the central implication of this...
Persistent link: https://www.econbiz.de/10010292292
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Employee stock options
Børsum, Øystein - 2010
An entrepreneur with information about firm quality seeks financing from an uninformed investor in order to pay a worker. I show that if the worker, too, knows the true quality of the firm, then certain long term wage agreements can credibly signal firm quality. Such wage agreements have a low...
Persistent link: https://www.econbiz.de/10010285589
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Maturity shortening and market failure
Thierfelder, Felix - 2012
Motivated by the financial crisis of 2007-2009 several papers have provided explanations for why liquidity may dry up during market stress. This paper also looks at this issue but focuses on the question as to why the liquidity crunch was not uniform across maturities. As funding pressures were...
Persistent link: https://www.econbiz.de/10010308262
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Diversity in Shareholder Protection in Common Law Countries
Lele, Priya P.; Siems, Mathias M. - In: CESifo DICE Report 05 (2007) 1, pp. 3-9
Persistent link: https://www.econbiz.de/10011696600
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Banks as corporate monitors: Evidence from CEO turnovers in China
He, Qing; Huang, Jiyuan; Li, Dongxu; Lu, Liping - 2016
​This paper examines the governance role of banks in replacement of underperforming CEOs in firms listed on Chinese stock exchanges. Under most circumstances, the findings suggest that the presence of outstanding loans does not increase the probability that a poorly performing CEO will be...
Persistent link: https://www.econbiz.de/10012148793
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Risk management with default-risky forwards
Korn, Olaf - 2008
This paper studies the impact of counter-party default risk of forward contracts on a firm's production and hedging …
Persistent link: https://www.econbiz.de/10010302529
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Mitigation of foreign Direct investment risk and hedging
Wahl, Jack E.; Broll, Udo - 2009
/Estrin 2004) together with the fact that almost all (92 %) of the world's top 500 companies enter derivatives markets for hedging …
Persistent link: https://www.econbiz.de/10010301354