predictions of the managerial risk incentives-theory of hedging strategy, according to which managers with convex compensation … put options, and if they finance these hedging positions with cash-on-hand or by selling upside (call options). Using hand …-collected data on derivative portfolios we characterize hedging strategies in the oil and gas industry. Our main findings are that …

A hedging contract may be closed before maturity when a firm experiences an ``event of default,'' such as a credit … and show that although the termination right reduces the costs of hedging, it is inefficient because the counterparty …

needs of clients. Consequently, the agency theory (principal-agent dependency) commonly used in modern times is being …

This paper argues that firms may not issue debt in order to avoid the adverse selection cost of debt. Theory suggests …