Grossman-Hart-Moore Property Rights Theory and the Transaction Cost Theory of the firm, and emphasizes the impact of … control arrangements o?ers strong support to our Property-Rights-Theory motivated model with self investment but rejects that … with cooperative investment. The Transaction-Cost-Theory motivated model leaves some important empirical findings …

generate dead weight loss whenmaximizing producer surpluses as expected under prevailing microeconomic theory. Theuse of …

, can gain little. Third, hedging exchange risk generally allows the U.S., but not Japanese, investors to benefit more from … international diversification. For U.S. investors, the international bond diversification with exchange risk hedging offers a … superior risk-return trade-off than the international stock diversification, with or without hedging. …

motivates the examination of the price risk managementcapabilities of the CBOT’s ethanol futures contract.Standard hedging … two- to eight-week hedging horizons, theethanol futures contract effectively hedges ethanol inventory price risk. The … effectiveness of thehedge increases with the hedging horizon. Thus, ethanol producers and brokers can use theethanol futures market …

This study focuses on hedging effectiveness defined as the proportionate price risk reduction created by hedging. By … overstate the amount of price risk reduction that can be achieved by hedging, (b) the properly computed hedging effectiveness in … the hedge ratio regression will also generally overstate the amount of risk reduction that can be achieved by hedging, (c …

hedging long bespoke positions. In stratifying a portfolio we define Class-A as the widest credits, Class-B as the middle tier … second part of Chapter Four, we perform analysis to find out which credit index should be used in hedging a long bespoke … selection, and stepwise regression methods to find out if we should use multiple indices in our hedging practices. Multiple …

, stock prices drop marginally significantly. Thus, hedging by producers is not necessarily good. This paper, however, finds …