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. …

and financial hedging. We find that contrary to a rational and frictionless benchmark, performance in previous derivatives …

We consider the effect of hedging with foreign currency derivatives on Brazilian firms in the period 1997 through 2004 …, a period that includes the Brazilian currency crisis of 1999. We find that, derivative users have valuations that are … higher than non-user firms. Hedging with currency derivatives allows firms to sustain larger capital investments, and also …