This research utilizes data from the World Bank Investment Climate Survey to examine the use of external capital for almost 70,000 small and medium-sized firms in 103 developing and developed countries. Contrary to conventional wisdom, we find that most small firms in even the poorest countries...

This research utilizes data from the World Bank Investment Climate Survey to examine the use of external capital for almost 70,000 small and medium-sized firms in 103 developing and developed countries. Contrary to conventional wisdom, we find that most small firms in even the poorest countries...

We examine the increase in firm-specific risk in the U.S. stock market which has been documented by prior research. We show that the observed increase is due solely to new listings by riskier companies. In addition, our results explain why prior researchers have found that growth opportunities,...

This paper analyzes derivative security positions reflecting the corporate risk management policies of 44 companies from the gold mining industry. We document substantial time-series variation in risk management policies. For most firms, little of this variation in hedge ratios is explained by...

We develop a simple framework for analyzing corporate risk management decisions when managers have a directional prediction on future price levels. The optimal hedging strategy with quot;a viewquot; retains a partial exposure and requires rebalancing. This can help explain the active trading...

Substantial academic research has explained why firms should hedge, but little work has addressed how firms should hedge. We assume that firms face costly states of nature and derive optimal hedging strategies using vanilla derivatives (e.g., forwards and options) and custom quot;exoticquot;...

This paper analyzes derivative security positions reflecting the corporate risk management policies of 48 companies from three different industries. There exists substantial time-series variation in risk management policies among firms in each industry. Very little of the variation in hedge...

The recent East Asian (EA) financial crisis provides a natural experiment for investigating foreign-exchange risk management by non-financial corporations. During this period, the financial crisis exposed local firms to large depreciations in exchange rates and decreased access to foreign...

This paper evaluates the pros and cons of including private equity fund investments in defined contribution plans. Potential benefits include higher returns and improved diversification as well as a relatively safe method for accessing investments previously only available to institutions and...