Previous research has demonstrated that information asymmetry translates into higher transaction costs for trading shares of a firm, which, in turn, raise the required rate of return and lower current stock price. The information asymmetry perspective suggests that, ceteris paribus, managers...

This is the third in a series of surveys on financial risk management practice and derivatives use by non-financial corporations in the United States undertaken by the Wharton School. This 1998 survey, written in partnership again with CIBC World Markets, extends the previous two surveys by...

In November, 1994, the Weiss Center for International Financial Research of the Wharton School undertook its first survey of derivatives and risk management practice by non-financial corporations in the United States. This 1995 survey, sponsored by CIBC Wood Gundy, is more detailed than the 1994...