We model the financing, cash holdings, and hedging policies of a firm facing financing frictions and subject to … cash-flow shocks affects the cash-flow sensitivity of cash, which can be positive or negative. Optimal hedging of permanent …

We study hedging cash flow risks in a supply chain where firms invest internal funds to improve production efficiencies …. We offer a decomposition framework to capture the cost reduction and flexibility effect of hedging. It allows us to … understand how a firm's hedging choice depends on its supply chain partner's decision, and how such interaction is affected by …