In this paper, we discuss various aspects of hedging in the wider context of the risk management process. It is meant …

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 paper investigates the determinants of hedging strategy choice. We introduce different dynamic discrete choice … frameworks with random effects to mitigate unobserved heterogeneity and state dependence. Using a new dataset on the hedging … activities of 150 US oil and gas producers, we find strong evidence that hedging strategy is influenced by investment …

We study the empirical performance of the classical minimum-variance hedging strategy, comparing several econometric … statistically and economically indistinguishable from the one-for-one naive hedge. However, minimum-variance hedging models … hedgers to use a naive hedging strategy on the crack spread bundles now offered by the exchange as it is the cheapest and …

hedging. We argue that high levels of internationalization can reduce the need for foreign exchange hedging through … diversification (e.g. sales to several markets) and operational hedging (matching of cash flows and operational flexibility). We …-financial German firms. Foreign exchange hedging activity peaks when half of sales (or long-term assets) is outside Europe. Our paper …

In this paper, we design and evaluate eight different strategies for hedging commodity price risks of industrial …-variance portfolio analysis for determining the most efficient hedging strategy. We find that the strategy adopted can have a marked …, portfolio optimization shows that a mix of various hedging strategies can further improve the profitability of a heat …

This paper investigates dynamic currency hedging benefits, with a further focus on the impact of currency hedging … is hedged. Hedging strategies of currency risk, using exchange rates futures and driven by several multivariate GARCH … decrease in hedging rations compared to naïve hedging strategies based on linear regressions or variance smoothing …

exchange and interest rate risk. This study aims to examine the determinants' of corporate hedging policies and derivative …