and hedging footnote disclosures. Using a difference-in-differences design, I investigate whether these mandatory … complementary measures: (1) actual changes in firms' derivative and hedging disclosures, and (2) pre-SFAS 161 levels of firms …' derivative and hedging activities. Both measures provide consistent evidence that bid-ask spreads decreased more for firms whose …

of Bhattacharya (1979) by including the possibility of hedging the future cash flow. We find that the higher the hedging …

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 … aversion reduces the hedging of price risk to avoid large regret in the case of increasing prices. The results show that regret …

operating flexibility and hedging are substitutes for liquidity management …

This paper studies the interaction between corporate hedging and liquidity policies. We present a theoretical model … that shows how corporate hedging facilitates greater reliance on cost-effective, externally-provided liquidity in lieu of … internal resources. We test the model's predictions by employing a new empirical approach that separates cash flow hedging from …