We examine the efficiency of hedging a credit derivative portfolio with a contrary position in a credit index in the …, the implied adjustments in capital charges could be reduced by the mentioned hedging strategy, and we show that there is … volatility are high. Increases in VIX, in the 10-year swap rate or in liquidity risk tend to decrease hedging efficiency …

Building on the well-documented relationship between corporate financial hedging and firms' borrowing costs, this study … financial hedging enables firms to pursue more inorganic growth opportunities in the form of M&As. Acquiring firms with … financial hedging programs have a lower borrowing cost and are more likely to pay for their deals with cash and use external …

reasons why hedging should lead to enhanced shareholder value, but empirical evidence in support of a substantial value … increase from hedging is, at best, mixed. In this paper, we synthesize the empirical evidence for value enhancement in firms …' hedging with derivatives using a statistical meta-analysis combining data from 47 different studies. Our findings indicate …

A closed-form solution is obtained for the discrete-time global quadratic hedging problem of Schweizer (1995) applied …

Recent research has shown that global quadratic hedging, also known as variance-optimal hedging and mean …-variance hedging, can significantly reduce the risk of hedging call and put options with long-term maturities (one year or more), such … as Long-Term Equity AnticiPation Securities (LEAPS). We propose a modification to global quadratic hedging that is more …

We examine the drivers of heterogeneity among the determinants of corporate hedging by applying meta …. When breaking the effects down across different world regions, it becomes apparent that the importance of the hedging … risk exposure, the source of the hedging data, the inclusion of relevant control variables, and the journal ranking of the …

By means of a difference-in-differences approach (sigma-DID), we investigate the effect that hedging has on corporate … risk. Examining the relation between hedging and the idiosyncratic variance of stock returns, we show that when new …

Non-financial corporations typically cite risk management as the primary reason for their derivatives use. If hedging …