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. …

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 … derivatives losses and operational gains. Specifically, firms ex post consider their operational profits separately from their …

, I show that it causes a reduction in the supply of FX derivatives (FXD) and results in a substantial decline in exports … for the firms that were heavily relying on FXD hedging. I offer a mechanism in which imbalances in hedging demand, banks …

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 …

foreign exchange (FX) derivatives in Germany. After controlling for fundamental firm characteristics, compensation schemes and … derivatives less, while CFOs with a general business education do so more. Analyzing their behavior with regard to speculation, we …

foreign exchange (FX) derivatives in Germany. After controlling for fundamental firm characteristics, compensation schemes and … derivatives less, while CFOs with a general business education do so more. Analyzing their behavior with regard to speculation, we …

risk with the use of derivatives. By examining the companies' annual reports and financial reviews for the year 2015. The … studied revealed that low use of the financial derivatives within Investment and the real estate industries. The use of the … derivatives was only 25% while is consider to be below due to the high risk associated with the industry. The risk management …