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Product price risk and liquidity management : evidence from the electricity industry

Chen, Lin; Schmid, Thomas; Weisbach, Michael S. - 2018

operating flexibility and hedging are substitutes for liquidity management …

Persistent link: https://www.econbiz.de/10011963380

Foreign exchange derivative use and firm value : evidence from German non-financial firms

Merkel, Matthias F. - 2018

In this paper I investigate whether the use of foreign exchange (FX) derivatives adds value to German firms, which together make up one of the major export economies in the world. I analyze a unique, hand-collected dataset that includes information on the use of FX derivatives by 391 firms...

Persistent link: https://www.econbiz.de/10011849346

Foreign exchange rate exposure of companies under dynamic regret

Entrop, Oliver; Fuchs, Fabian U. - 2020

optimal hedge ratio given the outcome of past hedging decisions and future expectations. The model implies that the optimal … 2015 and find strong evidence for the model's predictions. By adding a dynamic regret approach to the hedging and FX … literature we shed further light on the rationale behind selective hedging. …

Persistent link: https://www.econbiz.de/10012158926

Implicit currency carry trades of companies

Entrop, Oliver; Fuchs, Fabian U. - 2020

The currency carry trade (CCT) strategy - borrowing in low-interest-rate currencies and investing in high-interest-rate currencies - has been found to generate excess returns that cannot be explained by common risk factors. We argue that companies implicitly execute carry trades, when they have...

Persistent link: https://www.econbiz.de/10012158939

Determinants of power spreads in electricity futures markets : a multinational analysis

Spodniak, Petr; Bertsch, Valentin - 2017

The growth in variable renewable energy (vRES) and the need for flexibility in power systems go hand in hand. We study how vRES and other factors, namely the price of substitute fuels, power price volatility, structural breaks, and seasonality impact the hedgeable power spreads (profit margins)...

Persistent link: https://www.econbiz.de/10011763015

The hedging effectiveness of gold against US stocks in a post-financial crisis era

Shrydeh, Najib; Shahateet, Mohammed Issa; Mohammad, Suleiman - In: Cogent economics & finance 7 (2019) 1, pp. 1-23

spot prices and US equity prices following the 2007 Global Financial Crisis. It also aims at estimating hedging …,870 daily observations of US financial market during 2007-2017. Findings-The results suggest that the hedging effectiveness of … investors, policy makers and portfolio managers. The key findings of this study are critical in formulating optimal hedging …

Persistent link: https://www.econbiz.de/10014233046

Trading away incentives

Colonnello, Stefano; Curatola, Giuliano Antonio; Xia, Shuo - 2022 - This draft: October 19, 2022

Equity pay has been the primary component of managerial compensation packages at US public firms since the early 1990s. Using a comprehensive sample of top executives from 1992-2020, we estimate to what extent they trade firm equity held in their portfolios to neutralize increments in ownership...

Persistent link: https://www.econbiz.de/10013411812

The dominant currency financing channel of external adjustment

Casas, Camila; Meleshchuk, Sergii; Timmer, Yannick - 2023

to higher delinquencies and interest rates, while exports are unaffected. Natural and financial hedging successfully mute …

Persistent link: https://www.econbiz.de/10014304470

Potential use of weather derivatives in hedging aggregate viticulture yields : an analysis of the Niagara region of Canada

Cyr, Don J.; Kushner, Joseph; Zhang, Mingtian - In: Journal of wine economics 18 (2023) 2, pp. 97-121

Persistent link: https://www.econbiz.de/10014438139

Are options trading strategies really effective for hedging in the Indian derivatives market?

Shivaprasad S P; Geetha E; Acharya, Raghavendra; Vidya Bai G - In: Cogent economics & finance 10 (2022) 1, pp. 1-25

Hedging being a predominant financial concern, is considered as a robust method of managing investment risks …. Literature evinces that the covered call strategy provides nominal returns alongside effective hedging. However, studies have not … compared the hedging effectiveness of covered call, covered put, collar, and synthetic long call strategies in the equity …

Persistent link: https://www.econbiz.de/10013389458