optimal hedge ratio given the outcome of past hedging decisions and future expectations. The model implies that the optimal … 2015 and find strong evidence for the model's predictions. By adding a dynamic regret approach to the hedging and FX … literature we shed further light on the rationale behind selective hedging. …

This study investigates the effect of corporate hedging on stock price crash risk. We test two competing hypotheses …. Under the transparency hypothesis, hedging reduces a firm's information asymmetry and lowers crash risk. Under the opacity … hypothesis, hedging decreases financial reporting quality and increases crash risk. Using a comprehensive sample of firms from …

By means of a difference-in-differences approach (sigma-DID), we investigate the effect that hedging has on corporate … risk. Examining the relation between hedging and the idiosyncratic variance of stock returns, we show that when new …

hedging. Using meta-regression analysis to accumulate a hand-collected data set of 1016 estimates for the hedging premium … reported in 71 previous studies, we find that reported firm value effects of hedging are systematically larger for foreign … hedging premiums increase significantly when a study considers operational hedging strategies in addition to financial hedging …

The paper explores the link between financial distress and the commodity price hedging behaviour of Canadian oil firms …. Specifically, we argue that the expected costs of financial distress have been associated with the hedging behaviour for Canadian …