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Uniswap is a decentralized exchange (DEX) and was first launched on November 2, 2018 on the Ethereum mainnet [1] and is part of an Ecosystem of products in Decentralized Finance (DeFi). It replaces a traditional order book type of trading common on centralized exchanges (CEX) with a...
Persistent link: https://www.econbiz.de/10013220350
This paper analyzes simultaneity and endogeneity of ERM and Corporate Governance. It assesses quantitative relationship between Corporate Governance, ERM and value of the firm. The research results provide quantitative justifications for the boards to make investments in ERM and Corporate...
Persistent link: https://www.econbiz.de/10013223797
Non-financial companies typically face a multitude of risks potentially leading to significant fluctuations in the firm's cash-flows. This paper presents a case study approach demonstrating the hedging strategy employed by an international air carrier managing its jet-fuel price exposure. We...
Persistent link: https://www.econbiz.de/10013109368
Derivatives are the major icon among risk management practices. Firms usually use derivatives to hedge their foreign exchange and interest rate risk. This study aims to examine the determinants' of corporate hedging policies and derivative usage in risk management particularly with respect to...
Persistent link: https://www.econbiz.de/10013050354
Climate change has become a pressing issue that requires comprehensive and scientific understanding of its impact on the economy. Policymakers seek answers to the questions of how climate change affects economic growth, inflation, and the financial system. To design targeted policies, it is...
Persistent link: https://www.econbiz.de/10014355731
Using a unique and extremely granular data set of complete currency spot and derivatives positions for 101 large non-financial corporations, we compare the stated currency risk management policies with the actual strategies executed by these companies. We identify a notable discord between their...
Persistent link: https://www.econbiz.de/10012891514
Stress tests have become an important component of the supervisory toolkit. However, the extent of disclosure of stress-test results remains controversial. We argue that while stress tests uncover unique information to outsiders — because banks operate in second--best environments with...
Persistent link: https://www.econbiz.de/10010883379
This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the potential for different models to provide inconsistent outcomes, is shown to be increasing with market uncertainty. During calm periods, the underlying risk forecast models...
Persistent link: https://www.econbiz.de/10012973321
The consequences of global crisis have prompted preferred attention towards strengthening of qualitative-based analysis approaches such as key risk indicators (KRIs)/risk control and self assessment (RCSA).The paper concentrates on a quantitative analysis approach that can be applied to...
Persistent link: https://www.econbiz.de/10012981267
In this tutorial article, the strategies available to hedge market risks arising from different financing instruments are explained. Financial derivatives, whether futures or options have been widely applied in companies to mitigate or eliminate potential losses due to the uncertainty in...
Persistent link: https://www.econbiz.de/10012913055