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 …

spot prices and US equity prices following the 2007 Global Financial Crisis. It also aims at estimating hedging …,870 daily observations of US financial market during 2007-2017. Findings-The results suggest that the hedging effectiveness of … exposure is mitigated considering the relatively high proportion of funds that need to be invested in gold against stocks …

inside debt holdings have a positive effect on the extent to which a bank uses interest rate derivatives for hedging purposes …

This paper investigates the determinants of hedging strategy choice. We introduce different dynamic discrete choice … frameworks with random effects to mitigate unobserved heterogeneity and state dependence. Using a new dataset on the hedging … activities of 150 US oil and gas producers, we find strong evidence that hedging strategy is influenced by investment …

Major airlines rely on fuel hedging to manage risk of volatile fuel prices. We show that fuel hedging leads to lump sum … heterogeneous fuel hedging outcomes) lead to significant differences in ticket prices. In particular, a 10% reduction in the … reported fuel cost (due to hedging gain) leads to a 2.2% reduction in ticket prices. We conduct several robustness checks, and …

Using a hand-collected data, we provide evidence of extensive use of commodity derivative in hedging among U.S oil and … gas producers. We find large variations in hedging intensity and hedging profits while on average they generate … significant positive profits. The profits relate positively to the intensity of hedging. We further decompose the hedge ratio into …

This paper investigates how firms design the maturity of their hedging programs, and the real effects of maturity … choice on firm value and risk. Using a new dataset on hedging activities of 150 U.S. oil and gas producers, we find strong … evidence that hedging maturity is influenced by investment programs, market conditions, production specificities, and hedging …