Survey studies on corporate risk management show that firms follow very diverse riskmanagement strategies. The observed behavior is difficult to reconcile with establishedhedging theories and with the standard procedure for testing them. The present paper wants tolink the discussion on risk...

We analyse the application of hedge accounting and its influence on hedging behaviour in German and Swiss non-financial corporations. Of our sample companies, 72% apply hedge accounting. The likelihood of its use is associated with frequency of derivatives usage, size, IFRS experience, perceived...