We analyze the competition between two developed stock exchanges. Their development rests mainly on their capacity to …

This book analyzes in depth all major derivatives debacles of the last half century including the multi-billion losses …), Soci¨¦t¨¦ G¨¦n¨¦rale (2008) and AIG (2008). It unlocks the secrets of derivatives by telling the stories of institutions … financial engineering which brought them havoc. For others it was unbridled speculation perpetrated by rogue traders whose …

hedges. For a typical sample firm, pass-through and operational hedging each reduce exposure by 10% to 15%. Financial hedging … with foreign debt, and to a lesser extent FX derivatives, decreases exposure by about 40%. The combination of these factors …

derivatives is unconstrained and manager compensation itself induces a non-linear payoff. The shape of the optimal Sharpe ratio …

derivatives is unconstrained and manager compensation itself induces a non-linear payoff. The shape of the optimal Sharpe ratio …

This paper studies corporate risk management in a context with financial constraints and imperfect competition on the … product market. We show that the interactions between firms heavily affect their hedging demand. As a general rule, the firms …’ hedging demand decreases with the correlation between firms’ internal funds and investment opportunities. We show that when …