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 … derivatives. It characterizes optimal hedge positions and shows that regret aversion leads to stronger incentives to hedge …

optimal hedge ratio given the outcome of past hedging decisions and future expectations. The model implies that the optimal … 2015 and find strong evidence for the model's predictions. By adding a dynamic regret approach to the hedging and FX … literature we shed further light on the rationale behind selective hedging. …

. Therefore, the aim of this article is to systematise the potential risks of derivatives in the context of the past global … revealed the challenges and risks of derivatives and showed the tremendous impact that their imprudent use may have on the … certain risks. Infrastructures of the derivatives market, liquidity and an adequate supervisory framework are necessary to …

We study how risk management through hedging impacts firms and competition among firms in the life insurance industry … face costly external finance increase hedging after staggered state-level financial reform that reduces the costs of … hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also …

derivatives transactions in Mexico along with customs data to construct a unique data set on operational exchange rate exposure … and financial hedging. We find that contrary to a rational and frictionless benchmark, performance in previous derivatives …Even though financial risk management has the ability to generate value, the use of financial derivatives among …

for a specific interest rate portfolio. The recent financial crisis showed that risk management of derivatives portfolios …-line controlling and monitoring of derivatives portfolio. The portfolios should be designed in a way that risk and return be quantified …

cause dynamic hedging to fail. As an alternative, we investigate a quasi-static hedge of Parisian options under a more … contingent claims which are statically hedged. Through numerical experiments, we show the effectiveness of the suggested hedging …

associated risk exposure, commodity derivatives use is the highest. Finally, we find large increases in risk exposures concurrent … information. Currency derivatives use has surpassed that of interest rate derivatives and, conditioned on a firm having the … with the initiation of derivatives use …