A variety of theories have been developed regarding optimal hedging which attempt to explain the reasons firms may be interested in hedging. The study of hedging for exchange rate risk has usually focused on the use of derivatives and to a lesser extent on the use of other types of financial and...

The continuous movement in foreign exchange rates means that firms that operate internationally have exposure to exchange rate risk. Recently a variety of studies have shown that hedging can increase the value of the firm, if imperfections exist in capital markets. A variety of theories have...

This paper aims to analyze the reasons why insurance companies make the decision to hedge their corporate risk through derivatives, and to identify the variables that determine hedging volume in the context of the agency theory and maximization of firm value. The empirical study is based on data...