Schnabel, Jacques A. - In: The Journal of Risk Finance 16 (2015) 2, pp. 164-169
Purpose – This paper aims to examine the nexus between hedging, which reduces the volatility of corporate assets, and … ) projects. The question of whether hedging ameliorates or aggravates debt overhang is addressed. Design …’s NPV between debt- and stock-holders. The effect of hedging on this NPV -partitioning is then gauged to determine the …