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 … derivatives. It characterizes optimal hedge positions and shows that regret aversion leads to stronger incentives to hedge …

. 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 how risk management through hedging impacts firms and competition among firms in the life insurance industry … face costly external finance increase hedging after staggered state-level financial reform that reduces the costs of … hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also …

management (reducing currency-specific FX exposure) from speculation (increasing or holding currency-specific FX exposure …

derivatives transactions in Mexico along with customs data to construct a unique data set on operational exchange rate exposure … and financial hedging. We find that contrary to a rational and frictionless benchmark, performance in previous derivatives …Even though financial risk management has the ability to generate value, the use of financial derivatives among …

diversification or the application of currency hedging instruments. This analysis is based on a unique dataset of 339 publicly listed … hedging instruments.In a second step, we go beyond existing research and distinguish between two separate dimensions of family … costs and thus leads to lower levels of business segment diversification and less currency hedging. In contrast family …

Surveys of corporate risk management document that selective hedging, where managers incorporate their market views … into firms’ hedging programs, is widespread in the U.S. and other countries. Stulz (1996) argues that selective hedging … strength to withstand the additional risk from market timing. We study the practice of selective hedging in a 10-year sample of …