This study takes a direct approach to determine management motivation for the use of financial derivatives. We survey a … importance of a series of theoretical reasons for using derivatives. Generally, we find that managers are focused on the broad … reduction of risk and volatility of cash flows and earnings in using derivatives. Specific issues such as reducing bankruptcy …

deviate unless she can pre-commit to follow them. We apply our results to the discrete hedging problem of derivatives when …Despite much work on hedging in incomplete markets, the literature still lacks tractable dynamic hedges in plausible … specialized to the Black-Scholes setting. We also generalize our results to richer settings to study dynamic hedging with Poisson …

We examine whether cultural differences between countries help in explaining firms' hedging decisions. For this, we … manually collect data on the hedging behavior of worldwide energy utilities. The analysis reveals a strong impact of a country …'s long-term orientation, which reduces the probability for hedging and the hedged volume. The only other factor with a …

investigated derivatives usage for risk management purposes in the US (see, among others, Bodnar, Hayt, Marston and Smithson, 1995 … tend to rely on OTC-transactions, US firms use exchange-traded derivatives and therefore require a higher counter party … rating for derivatives transactions. This distinction can be accredited to the differences in the financial environments …

‐sectional survey of risk management practice and derivatives use by a sample of Australian firms. Overall, the results suggest that … firms are likely to have more frequent reporting of derivatives use, and are more likely to use swaps and options to manage …

This paper provides a review of research on financial derivatives, with an emphasis on and comprehensive coverage of … derivatives and then summarize studies explaining when and why firms use derivatives. We then discuss the evolution of the … accounting rules related to derivatives (and associated disclosure requirements) and studies that examine changes in these …

) influences their usage of currency derivatives to manage currency risk. It provides an empirical assessment of whether economies … the relationship of the size of MBs to their usage of currency derivatives was tested using regression, correlation and … by total assets) of MBs and the total principal amounts of currency derivatives used. These results suggest that MBs are …

Purpose The purpose of this paper is to study the value effects of hedging in the airline industry during a period of … high volatility and high fuel costs. The authors also study the determinants of hedging in the airline industry, most … conditions during the sample period. Findings The authors find a positive relationship between hedging and firm value, but the …

derivatives (CDs) to hedge and speculate in managing currency risk. It aims to provide an empirical assessment of CDs products …

Financial derivatives play an important role in helping companies manage the risk involved in interest rates, currency … derivatives in Malaysian corporations by using a sample of 58 nonfinancial firms over the period 2011 to 2016. Relying on … ratio and profitability factors are significant in the use of financial derivatives among Malaysian financial firms. This …