complementary measures: (1) actual changes in firms' derivative and hedging disclosures, and (2) pre-SFAS 161 levels of firms …' derivative and hedging activities. Both measures provide consistent evidence that bid-ask spreads decreased more for firms whose … reduced information asymmetry among investors regarding the effects of derivative and hedging activities on firm value. These …

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 … aversion reduces the hedging of price risk to avoid large regret in the case of increasing prices. The results show that regret …

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 …

The overall market for derivative securities is often estimated as more than ten times the World's GDP and many decry …

influence the design of bank capital regulation. Relative to a benchmark autarkic regime, higher capital requirements mitigate … measurement in influencing the design of bank regulation through the implementation of capital requirements …

We examine the efficiency of hedging a credit derivative portfolio with a contrary position in a credit index in the … volatility are high. Increases in VIX, in the 10-year swap rate or in liquidity risk tend to decrease hedging efficiency … usually rather unstable due to the volatility of CDS spreads. Since credit derivatives on single names are not very liquid …

-linked securities. It considers the trade-offs an insurer or reinsurer faces in selecting a hedging strategy. We compare index and … indemnity-based hedging as alternative design choices and ask which is capable of creating the greater value for shareholders … problem yields a conflict of interest between shareholders and other stakeholders. Given the fact that hedging may improve the …

effect and (de)leverage effect of Bitcoin inverse futures, and obtain optimal hedging strategies in closed forms for both … empirical studies. Our findings show that the optimal hedging strategies of Bitcoin inverse futures achieve superior hedging …

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 … distress reduce their derivative portfolios and why they may shift to physical delivery contracts. Using hand-collected data …