The paper studies the effect of tax asymmetry on (risk neutral) competitive firm's production and optimal hedging … distribution of the random price, (c) in a multi-period framework with hedging, if tax loss carryback and tax loss carryforward … affected by its first period's profits, the availability of hedging tools, and the tax system …

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 … downside price risk than standard expected utility theory. In the profit region of the price distribution, however, 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 …