further exacerbated by income volatility caused by international commodity price fluctuations, while directional hedging, as a … favourite policy response, has been both costly and ineffective. We propose efficient and effective volatility hedging … contribution is a dynamic overlay futures hedging strategy with substantial reduction in hedging cost. Second, we account for …

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 …

This paper analyzes optimal hedging of a tradable risk (e.g. price risk or exchange rate risk) with forward contracts … noise, cross hedging and speculating on the real risk premium are conflicting objectives; the level of relative risk …

of hedging on firm value and performance. We show that interest rate risk hedging is negatively related to firm value and … performance and that this adverse relation is caused by the use of very popular and yet inefficient hedging strategies which rely … on options and swaps contracts. The high demand for the above inefficient hedging strategies is very intriguing because …

reinsurers. In response, weather risk hedging may be valuable, however, due to basis risk it has been largely unsuccessful to … dependence of weather risk to reduce basis risk. The analysis shows that the LSHAC model can improve the hedging performance … through more accurate modelling of the dependence structure of weather risks and is more effcient in hedging extreme downside …

We examine the efficiency of hedging a credit derivative portfolio with a contrary position in a credit index in the …, the implied adjustments in capital charges could be reduced by the mentioned hedging strategy, and we show that there is … volatility are high. Increases in VIX, in the 10-year swap rate or in liquidity risk tend to decrease hedging efficiency …