Existing theory offers two divergent views on the effect of hedging on external financing. One view is that hedging … than internally generated funds. A contrasting view is that by reducing information asymmetries and/or volatility, hedging … provide empirical evidence on the effect of foreign currency hedging on external financing. My results suggest foreign …

This study examines the relation between bank equity ownership and corporate hedging in Japan, an economy where banks … positively related to firm value providing support to the notion that bank equity ownership increases corporate hedging which, in … turn, leads to high firm valuation. Robustness tests show that the relation between hedging and main bank equity ownership …

We study the implications of financial hedging for corporate cash policy. Using a web crawler program to collect data … on the use of financial derivatives, we find that firms with financial hedging programs have smaller cash reserves but a … higher value of cash than firms without hedging contracts in place. Our empirical results are robust when controlling for …

Purpose – In this study, we investigate determinants of hedging with derivatives and its effect on firm value and firm …-stage analysis by using gains and losses from derivatives as instrument variable for hedging with derivatives. Findings – Our … analysis on the determinants of hedging shows that firms that are more leveraged and less profitable, and with more growth …

. This study finds that Bitcoin performed poorly in hedging this tail risk …

We formulate an optimal hedging problem of Bitcoin inverse futures under the minimumvariance framework. We obtain the … optimal hedging strategy in closed forms for both short and long hedges, and compute hedging efficiency under the optimal … strategy. Our empirical studies show that the optimal hedging strategy achieves superior effectiveness in reducing risk and …

Extant theories suggest that managers may use hedging either to alleviate underinvestment problems caused by costly … investigate this issue using a hand-collected dataset of hedging and investment behavior of oil and gas exploration and production … firms. We do not find evidence that hedging alleviates underinvestment problems. However, we do find a strong positive …

successful in reducing capital requirements. Indeed the proposed local hedging scheme benefits from a higher exposure to equity …

light on this central question in corporate hedging theory. We use hand-collected data from the oil and gas industry that …-based theories of risk management. We document a broad absolute decrease in the use of hedging and a significant relative decrease in … hedging in financially constrained firms …

Local and global quadratic hedging are alternatives to delta hedging that more appropriately address the hedging …) the value added of global over local quadratic hedging, (ii) the importance of the choice of measure (real-world or risk …-neutral) when implementing quadratic hedging, and (iii) the robustness of quadratic hedging to model mis-specification. We find that …