. 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 corporate hedging during the 2007-2008 financial crisis. We find that hedging programs are fragile. Firms … whose lenders suffered losses on their mortgage portfolios were more likely to lose access to over-the-counter derivatives … existing lines of credit, and saving more out of realized cash-flows. Terminations of hedging programs decreased firm value by …

spot prices and US equity prices following the 2007 Global Financial Crisis. It also aims at estimating hedging …,870 daily observations of US financial market during 2007-2017. Findings-The results suggest that the hedging effectiveness of … exposure is mitigated considering the relatively high proportion of funds that need to be invested in gold against stocks …

2007 to 2009. Using balance-sheet data on firms' positions in derivatives and their foreign exchange exposure, this study …This paper analyzes the use of foreign exchange derivatives by non-financial publicly traded Brazilian companies from … finds that a significant number of companies speculated in the derivatives market. Two types of speculators are identified …

2007 to 2009. Using balance-sheet data on firms' positions in derivatives and their foreign exchange exposure, this study …This paper analyzes the use of foreign exchange derivatives by non-financial publicly traded Brazilian companies from … finds that a significant number of companies speculated in the derivatives market. Two types of speculators are identified …

-collect data on credit lines and interest rate hedging for a random sample of 600 COMPUSTAT firms. We document that drawdowns of …

2007 to 2009. Using balance-sheet data on firms' positions in derivatives and their foreign exchange exposure, this study …This paper analyzes the use of foreign exchange derivatives by non-financial publicly traded Brazilian companies from … finds that a significant number of companies speculated in the derivatives market. Two types of speculators are identified …

This paper investigates dynamic currency hedging benefits, with a further focus on the impact of currency hedging … is hedged. Hedging strategies of currency risk, using exchange rates futures and driven by several multivariate GARCH … decrease in hedging rations compared to naïve hedging strategies based on linear regressions or variance smoothing …

This study investigates the effect of corporate hedging on stock price crash risk. We test two competing hypotheses …. Under the transparency hypothesis, hedging reduces a firm's information asymmetry and lowers crash risk. Under the opacity … hypothesis, hedging decreases financial reporting quality and increases crash risk. Using a comprehensive sample of firms from …