extent when having high export and import shares simultaneously. We interpret this finding as evidence of operational hedging … that arises when foreign-denominated revenues and costs match, crowding out financial hedging. Our identification strategy …

compensation. New to the literature, our model setup permits compatibility of private saving and hedging, manager's risk aversion …

We propose a maximum-expected utility hedging model with futures where cash and futures returns follow a bivariate skew … normality, skewness has a material impact when the agent is significantly risk averse. Pure hedging demand is either greater or … pure hedging and minimum-variance demand increases with basis risk, i.e. the imperfect correlation between cash and futures …

its hedging effectiveness. This greater transparency is expected to incentivize firms toward demonstrating greater … effectiveness in their derivatives use for hedging purposes. The literature on the real consequences of derivatives use is limited …, probably due to the difficulty of ascertaining its hedging effectiveness in addition to its purpose, which is made possible …

hedging strategy of high-volume firms. Under certain conditions, high-volume firms signal their type by hedging more than they …, while low-volume firms only use forwards. The model suggests that heterogeneous and prima facie non-optimal hedging policies …

This paper analyzes the optimal production and hedging decisions of a competitive firm holding optimism and pessimism … on the output price distribution nor on the firm's preferences. Furthermore, the validity of the full-hedging theorem … the firm's optimism level above which it is never optimal for the firm to full-hedge even when an unbiased hedging …