prediction. This information may provide tax and SEC regulators, investors, managers and other interested parties with insight …

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

hedging strategies that lead to hefty losses in the aftermath of the financial crisis. The sample is comprised of 346 … indicate that the lack of a formal hedging policy, no monitoring to the CFOs, and considerations of hubris and remuneration … contribute to the mismanagement of hedging policies. …