Citation for published version (APA): Oosterhof, C. M. (2006). Essays on corporate risk management and optimal hedging s.n.

Size: px
Start display at page:

Download "Citation for published version (APA): Oosterhof, C. M. (2006). Essays on corporate risk management and optimal hedging s.n."

Transcription

1 University of Groningen Essays on corporate risk management and optimal hedging Oosterhof, Casper Martijn IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2006 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Oosterhof, C. M. (2006). Essays on corporate risk management and optimal hedging s.n. Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date:

2 BIBLIOGRAPHY Alkebäck, P. and N. Hagelin, 1999, Derivatives Usage by Non-financial Firms in Sweden with an International Comparison, Journal of International Financial Management and Accounting, Vol. 10, pp Alkebäck, P., N. Hagelin, and B. Pramborg, 2006, Derivatives Usage by Nonfinancial Firms in Sweden 1996 and 2003: What has Changed?, Managerial Finance, forthcoming. Allayannis, G. and E. Ofek, 2001, Exchange Rate Exposure, Hedging, and the Use of Foreign Currency Derivatives, Journal of International Money and Finance, Vol. 20, pp Allayannis, G. and A. Mozumdar, 2000, Cash Flow, Investment, and Hedging, Working Paper, University of Virginia. Allen, F., and A.M. Santomero, 1998, The Theory of Financial Intermediation, Journal of Banking and Finance, Vol. 21, pp Altman, E.L., 1968, Financial Ratios, Discriminant Analysis, and the Prediction of Corporate Bankruptcy, Journal of Finance, Vol. 23, pp Arrow, K.J., 1964, The Role of Securities in the Optimal Allocation of Risk- Bearing, Reprinted in: Essays in the Theory of Risk Bearing, Markham Publishing Co., Baillie, R.T., and T. Bollerslev, 2000, The Forward Premium Anomaly Is Not as Bad as You Think, Journal of International Money and Finance, Vol. 19, pp

3 Baron, D.P., 1970, Price Uncertainty, Utility and Industry Equilibrium in Pure Competition, International Economic Review, Vol. 11, pp Battermann, H.L., M. Braulke, U. Broll, and J. Schimmelpfennig, 2000, The Preferred Hedge Instrument, Economics Letters, Vol. 66, pp Beja, A., 1972, On Systematic and Unsystematic Components of Financial Risk, Journal of Finance, Vol. 27, pp Benninga, S.Z., R. Eldor, and I. Zilcha, 1983, Optimal Hedging in the Futures Market under Price Uncertainty, Economics Letters, Vol. 13, pp Benninga, S.Z., R. Eldor, and I. Zilcha, 1985, Optimal International Hedging and Output Policies in Commodity and Currency Forward Markets, Journal of International Money and Finance, Vol. 4, pp Benninga, S.Z., and C.M. Oosterhof, 2004, Hedging with Forwards and Puts in Complete and Incomplete Markets, Journal of Banking and Finance, Vol. 28, pp Berkman, H., and M.E. Bradbury, 1996, Empirical Evidence on the Corporate Use of Derivatives, Financial Management, Vol. 25, pp Berkman, H., M.E. Bradbury, and S. Magan, 1997, An International Comparison of Derivatives Use, Financial Management, Vol. 26, pp Bessembinder, H., 1991, Forward Contracts and Firm Value: Investment Incentive and Contracting Effects, Journal of Financial and Quantitative Analysis, Vol. 26, pp Black, F., and M. Scholes, 1973, The Pricing of Options and Corporate Liabilities, Journal of Political Economy, Vol. 81, pp

4 Block, S.B., and T.J. Gallagher, 1986, The Use of Interest Rate Futures and Options by Corporate Financial Managers, Financial Management, Vol. 15, pp Bodnar, G.M., and G. Gebhardt, 1999, Derivatives Usage in Risk Management by U.S. and German Non-Financial Firms: A Comparative Study, Journal of International Financial Management and Accounting, Vol. 20, pp Bodnar, G.M., G.S. Hayt, and R.C. Marston, 1996, 1995 Wharton Survey of Derivatives Usage by Us Non-Financial Firms, Financial Management, Vol. 25, pp Bodnar, G.M., G.S. Hayt, and R.C. Marston, 1998, 1998 Survey of Financial Risk Management by U.S. Non-Financial Firms, Financial Management, Vol. 27, pp Bodnar, G.M., G.S. Hayt, R.C. Marston, and C.W. Smithson, 1995, Wharton Survey of Derivatives Usage by Non-Financial Firms, Financial Management, Vol. 24, pp Bodnar, G.M., A. de Jong, and V. Macrae, 2004, The Impact of Institutional Differences on Derivatives Usage: A Comparative Survey of American and Dutch Firms, European Financial Management, Vol. 9, pp Brennan, M., 1970, Taxes, Market Valuation and Corporate Financial Policy, National Tax Journal, Vol. 23, pp Brown, G., 2001, Managing Foreign Exchange Rate Risk with Derivatives, Journal of Financial Economics, Vol. 60, pp Brown, G., P. Crabb, and D. Haushalter, 2002, Are Firms Successful at Selective Hedging?, Working Paper, University of North Carolina. 155

5 Chiang, T.C., and J.A. Trinidad, 1997, Risk and International Parity Conditions: A Synthesis from Consumption-based Models, International Economic Journal, Vol. 11, pp Danthine, J.P., 1978, Information, Futures Prices and Stabilizing Speculation, Journal of Economic Theory, Vol. 17, pp De Ceuster, M.J.K., E. Durink, E. Laveren, and I. Lodewyckx, 2000, A Survey into the Use of Derivatives by Large Non-Financial Firms Operating in Belgium, European Financial Management, Vol. 6, pp Debreu, G., 1959, The Theory of Value, Wiley, New York. Deshmukh, S. and S.C. Vogt, 2005, Investment, Cash Flow, and Corporate Hedging, Journal of Corporate Finance, Vol. 11, pp Dolde W., 1993, Hedging, Leverage, and Primitive Risk, Journal of Financial Engineering, Vol. 4, pp Fama, E.F., and M.H. Miller, 1972, The Theory of Finance, Holt Rinehart & Winston, New York. Farrar, D., and L. Selwyn, 1967, Taxes, Corporate Financial Policy and Return to Investors, National Tax Journal, Vol. 20, pp Feder, G., R.E. Just, and A. Schmitz, 1980, Futures Markets and the Theory of the Producer under Price Uncertainty, Quarterly Journal of Economics, Vol. 97, pp Fok, R.C.W., C. Carroll, and M.C. Chiou, 1997, Determinants of Corporate Hedging and Derivatives: A Revisit, Journal of Economics and Business, Vol. 49, pp

6 Franke, G., R.C. Stapleton, and M.G. Subrahmanyam, 1998, Who Buys and Who Sells Options: The Role and Pricing of Options in an Economy with Background Risk, Journal of Economic Theory, Vol. 82, pp Friend, I., and M. Blume, 1975, The Demand for Risky Assets, American Economic Review, Vol. 5, pp Froot, K.A., D.S. Scharfstein, and J.C. Stein, 1993, Risk Management: Coordinating Corporate Investment and Financing Policies, Journal of Finance, Vol. 48, pp Gay, G.D., and J. Nam, 1998, The Underinvestment Problem and Corporate Derivatives Use, Financial Management, Vol. 27, pp Géckzy, C., B.A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, Vol. 52, pp Graham, J.R., and C. Harvey, 2001, The Theory and Practice of Corporate Finance: Evidence from the Field, Journal of Financial Economics, Vol. 60, pp Graham, J.R., M. Lemmon, and J. Schallheim, 1998, Debt, Leases, Taxes, and the Endogeneity of Corporate Tax Status, Journal of Finance, Vol. 53, pp Graham, J.R. and D.A. Rogers, 2002, Do Firms Hedge in Response to Tax Incentives?, Journal of Finance, Vol. 57, pp Graham, J.R., and C.W. Smith, 1999, Tax Incentives to Hedge, Journal of Finance, Vol. 54, pp Grant, K., and A.P. Marshall, 1997, Large UK Companies and Derivatives, European Financial Management, Vol. 3, pp

7 Hakkarainen, A., N. Joseph, E. Kasanen, and V. Puttonen, 1998, The Foreign Exchange Exposure Management Practices of Finnish Industrial Firms, Journal of International Financial Management and Accounting, Vol. 9, pp Hall, B.J., 2002, Six Challenges of Equity-Based Pay Design, Presentation at HBS Executive Compensation Workshop. Hall, B.J., and K.J. Murphy, 2000, Optimal Exercise Prices for Risk Averse Executives, American Economic Review, Vol. 90, pp Hall, B.J., and K.J. Murphy, 2002, Stock Options for Undiversified Executives, Journal of Accounting and Finance, Vol. 33, pp Haushalter, D.G., 2000, Financing Policy, Basis Risk and Corporate Hedging: Evidence from Oil and Gas Exporters, Journal of Finance, Vol. 55, pp Hentschel, L., and S.P. Kothari, 2001, Are Corporations Reducing or Taking Risks with Derivatives?, Journal of Financial and Quantitative Analysis, Vol. 36, pp Holthausen, D.M., 1979, Hedging and the Competitive Firm under Price Uncertainty, American Economic Review, Vol. 69, pp Jensen, M.C., and W.H. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, Vol. 3, pp Jensen, M.C., and K.J. Murphy, 1990, Performance Pay and Top Management Incentives, Journal of Political Economy, Vol. 98, pp

8 Kahneman, D., and A. Tversky, 1979, Prospect Theory: An Analysis of Decision under Risk, Econometrica, Vol. 47, pp Lapan, H., and G. Moschini, 1994, Futures Hedging under Price, Basis, and Production Risk, American Journal of Agricultural Economics, Vol. 76, pp Lapan, H., G. Moschini, and S.D. Hanson, 1991, Production, Hedging, and Speculative Decisions with Options and Futures Markets, American Journal of Agricultural Economics, Vol. 73, pp Loderer, C., and K. Pichler, 2000, Firms: Do You Know Your Currency Risk Exposure? Survey Results, Journal of Empirical Finance, Vol. 7, pp MacKie-Mason, J., 1990, Do Taxes Affect Corporate Finance Decisions?, Journal of Finance, Vol. 45, pp Mallin, C., K. Ow-Yong, and M. Reynolds, 2001, Derivatives Usage in UK Non- Financial Listed Companies, European Journal of Finance, Vol. XX, pp Mason, R., 1995, The Allocation of Risk, in: The Global Financial System: A Functional Perspective, Harvard Business School, Boston. Mayers, D. and C.W. Smith, 1982, On the Corporate Demand for Insurance, Journal of Business, Vol. 55, pp McKinnon, R.I., 1967, Futures Markets, Buffer Stocks, and Income Stability for Primary Producers, Journal of Political Economy, Vol. 75, pp

9 Merton, R.C., 1989, On the Applications of the Continuous-Time Theory of Finance to Financial Intermediation, Geneva Papers on Risk and Insurance, Vol. 14, pp Meulbroek, L.K., 2000, The Effect of Equity-Linked Compensation: Understanding the Full Costs of Awarding Executive Stock Options, Working paper, Harvard Business School. Mian, S.L., 1996, Evidence on Corporate Hedging Policy, Journal of Financial and Quantitative Analysis, Vol. 31, pp Miller, M.H., and F. Modigliani, 1961, Dividend Policy, Growth and the Valuation of Shares, Journal of Business, Vol. 34, pp Minton, B.A., and C. Schrand, 1999, The Impact of Cash Flow Volatility on Discretionary Investments and the Cost of Debt and Equity Financing, Journal of Financial Economics, Vol. 54, pp Modigliani, F., and M.H. Miller, 1958, The Cost of Capital, Corporation Finance and the Theory of Investment, American Economic Review, Vol. 48, pp Moschini, G., and H. Lapan, 1995, The Hedging Role of Options and Futures under Joint Price, Basis, and Production Risk, International Economic Review, Vol. 36, pp Myers, S.C., 1977, Determinants of Corporate Borrowing, Journal of Economics, Vol. 5, pp Nance, D.R., C.W. Smith, and C.W. Smithson, 1993, On the Determinants of Corporate Hedging, Journal of Finance, Vol. 48, pp Oosterhof, C.M., 2001, An Overview of the Literature on Corporate Risk Management, SOM Research Report Nr. 01E06, University of Groningen. 160

10 Petersen, M., and R. Thiagarajan, 2000, Risk Measurement and Hedging: With and Without Derivatives, Financial Management, Vol. 29, pp Phillips, A.L., 1995, 1995 Derivatives Practices and Instruments Survey, Financial Management, Vol. 24, pp Pramborg, B., 2005, Foreign Exchange Risk Management by Swedish and Korean Nonfinancial Firms: A Comparative Survey, Pacific-Basis Finance Journal, Vol. 13, pp Pratt, J.W., 1964, Risk Aversion in the Small and in the Large, Econometrica, Vol. 32, pp Rawls, S.W., and C.W. Smithson, 1990, Strategic Risk Management, Journal of Applied Corporate Finance, Vol. 3, pp Saito, R., and R.F. Schiozer, 2005, Derivatives Usage and Risk Management by Non-financial Firms: A Comparison between Brazilian and International Evidence, Working paper, Getulio Vargas Foundation. Sandmo, A., On the Theory of the Competitive Firm under Price Uncertainty, American Economic Review, Vol. 61, pp Saunders, A., 1997, Financial Institutions Management, A Modern Perspective, Irwin. Smith, C.W., 1995, Corporate Risk Management: Theory and Practice, Journal of Derivatives, Vol. 2, pp Smith, C.W., C.W. Smithson, and D.S. Wilford, 1990, Managing Financial Risk, New York: Harper Business. Smith, C.W., and R.M. Stulz, 1985, The Determinants of Firms Hedging Policies, Journal of Financial and Quantitative Analysis, Vol. 20, pp Smithson, C.W., 1998, Managing Financial Risk, Irwin. 161

11 Stulz, R.M., 1984, Optimal Hedging Policies, Journal of Financial and Quantitative Analysis, Vol. 19, pp Stulz, R.M., 1996, Rethinking Risk Management, Journal of Applied Corporate Finance, Vol. 9, pp Stulz, R.M., and R. Williamson, 1997, Identifying and Quantifying Exposures, In Robert Jameson (ed.), Financial Risk and the Corporate Treasury: New Developments in Strategy and Control, pp , London: Risk Publications. Thaler, R.H. (ed.), 1993, Advances in Behavioral Finance, Russel Sage Foundation, New York. Thaler, R.H. (ed.), 2005, Advances in Behavioral Finance, Vol. II, Russel Sage Foundation, New York. Tufano, P., 1996, Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry, Journal of Finance, Vol. 51, pp Tversky, A., and D. Kahneman, 1986, Rational Choice and the Framing of Decisions, Journal of Business, Vol. 49, pp Tversky, A., and D. Kahneman, 1992, Advances in Prospect Theory: Cumulative Representation of Uncertainty, Journal of Risk and Uncertainty, Vol. 5, pp Von Neumann, J., and O. Morgenstern, 1947, Theory of Games and Economic Behavior, Princeton University Press. Warner, J.B., 1977, Bankruptcy Costs: Some Evidence, Journal of Finance, Vol. 32, pp

12 Wu, Y., and H. Zhang, 1997, Forward Premiums as Unbiased Predictors of Future Currency Depreciation: A Non-parametric Analysis, Journal of International Money and Finance, Vol. 16, pp

13

14

Citation for published version (APA): Oosterhof, C. M. (2006). Essays on corporate risk management and optimal hedging s.n.

Citation for published version (APA): Oosterhof, C. M. (2006). Essays on corporate risk management and optimal hedging s.n. University of Groningen Essays on corporate risk management and optimal hedging Oosterhof, Casper Martijn IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish

More information

The Use of Options in Corporate Risk Management

The Use of Options in Corporate Risk Management MPRA Munich Personal RePEc Archive The Use of Options in Corporate Risk Management Söhnke M. Bartram Lancaster University 7. January 2004 Online at http://mpra.ub.uni-muenchen.de/6663/ MPRA Paper No. 6663,

More information

Author(s) Takao, Atsushi, Lantara, I Wayan.

Author(s) Takao, Atsushi, Lantara, I Wayan. Kochi University of Technology Aca The Determinants Of The Use Of De Title panese Insurance Companies Author(s) Takao, Atsushi, Lantara, I Wayan Society for Social Management Sys Citation ournal, 6(1)

More information

THE DETERMINANTS OF THE USE OF DERIVATIVES IN JAPANESE INSURANCE COMPANIES. Atsushi Takao I Wayan Nuka Lantara

THE DETERMINANTS OF THE USE OF DERIVATIVES IN JAPANESE INSURANCE COMPANIES. Atsushi Takao I Wayan Nuka Lantara 2009-38 THE DETERMINANTS OF THE USE OF DERIVATIVES IN JAPANESE INSURANCE COMPANIES Atsushi Takao I Wayan Nuka Lantara THE DETERMINANTS OF THE USE OF DERIVATIVES IN JAPANESE INSURANCE COMPANIES Atsushi

More information

Credit Risk Management: A Survey of Practices

Credit Risk Management: A Survey of Practices DePaul University From the SelectedWorks of Ali M Fatemi 2006 Credit Risk Management: A Survey of Practices Ali M Fatemi, DePaul University Iraj Fooladi, Dalhousie University Available at: https://works.bepress.com/alifatemi/3/

More information

The Determinants of Foreign Currency Hedging by UK Non- Financial Firms

The Determinants of Foreign Currency Hedging by UK Non- Financial Firms The Determinants of Foreign Currency Hedging by UK Non- Financial Firms Amrit Judge Economics Group, Middlesex University The Burroughs, Hendon London NW4 4BT Tel: 020 8411 6344 Fax: 020 8411 4739 A.judge@mdx.ac.uk

More information

Corporate Risk Management: Costs and Benefits

Corporate Risk Management: Costs and Benefits DePaul University From the SelectedWorks of Ali M Fatemi 2002 Corporate Risk Management: Costs and Benefits Ali M Fatemi, DePaul University Carl Luft, DePaul University Available at: https://works.bepress.com/alifatemi/5/

More information

Why Do Non-Financial Firms Select One Type of Derivatives Over Others?

Why Do Non-Financial Firms Select One Type of Derivatives Over Others? Why Do Non-Financial Firms Select One Type of Derivatives Over Others? Hong V. Nguyen University of Scranton The increase in derivatives use over the past three decades has stimulated both theoretical

More information

Master Thesis Finance Foreign Currency Exposure, Financial Hedging Instruments and Firm Value

Master Thesis Finance Foreign Currency Exposure, Financial Hedging Instruments and Firm Value Master Thesis Finance 2012 Foreign Currency Exposure, Financial Hedging Instruments and Firm Value Author : P.N.G Tobing Student number : U1246193 ANR : 187708 Department : Finance Supervisor : Dr.M.F.Penas

More information

Offsetdrukkerij Ridderprint B.V., Ridderkerk

Offsetdrukkerij Ridderprint B.V., Ridderkerk ESSAYS O CORPORATE RISK MAAGEMET AD OPTIMAL HEDGIG CASPER MARTIJ OOSTERHOF Publisher: Labyrint Publications P.O. Box 334 2984 AX Ridderkerk The etherlands Printed by : Offsetdrukkeri Ridderprint B.V.,

More information

The Use of Derivatives in Nordic Firms

The Use of Derivatives in Nordic Firms The Use of Derivatives in Nordic Firms Tor Brunzell, Mats Hansson, and Eva Liljeblom * This version: December 7, 2009 ABSTRACT We contribute to the previous literature on the use of derivatives by studying

More information

Rationales for Corporate Risk Management - A Critical Literature Review

Rationales for Corporate Risk Management - A Critical Literature Review MPRA Munich Personal RePEc Archive Rationales for Corporate Risk Management - A Critical Literature Review Barbara Monda and Marco Giorgino and Ileana Modolin DIG, Politecnico di Milano February 2013 Online

More information

The Determinants of Corporate Hedging Policies

The Determinants of Corporate Hedging Policies International Journal of Business and Social Science Vol. 2 No. 6; April 2011 The Determinants of Corporate Hedging Policies Xuequn Wang Faculty of Business Administration, Lakehead University 955 Oliver

More information

What are the effects of derivatives on firm risk?

What are the effects of derivatives on firm risk? Tilburg School of Economics and Management Master Thesis in Finance What are the effects of derivatives on firm risk? An empirical study on S&P 500 manufacturing firms for the years 2007-2009 Author R.

More information

Factors for Using Derivatives: Evidence From Malaysian Non- Financial Companies

Factors for Using Derivatives: Evidence From Malaysian Non- Financial Companies Abstract Factors for Using Derivatives: Evidence From Malaysian Non- Financial Companies Noryati Ahmad 1* Balkis Haris 2 1. Arshad Ayub Graduate Business School, Universiti Teknologi MARA, 40450 Shah Alam,

More information

The Journal of Risk Finance Corporate derivatives and foreign exchange risk management: A case study of nonfinancial

The Journal of Risk Finance Corporate derivatives and foreign exchange risk management: A case study of nonfinancial The Journal of Risk Finance Corporate derivatives and foreign exchange risk management: A case study of nonfinancial firms of Pakistan Talat Afza Atia Alam Article information: To cite this document: Talat

More information

Usage of Financial Derivatives under IAS No. 39: Evidence from the Emerging Capital Market of Jordan

Usage of Financial Derivatives under IAS No. 39: Evidence from the Emerging Capital Market of Jordan Usage of Financial Derivatives under IAS No. 39: Evidence from the Emerging Capital Market of Jordan Seif Obeid ALshbiel Faculty of Finance and Business Administration, AL Al-Bayt University, Jordan seif198272@yahoo.com

More information

THE VALUE OF HEDGING THROUGH CORPORATE GOVERNANCE: A LITERATURE REVIEW AND DIRECTIONS FOR FUTURE RESEARCH

THE VALUE OF HEDGING THROUGH CORPORATE GOVERNANCE: A LITERATURE REVIEW AND DIRECTIONS FOR FUTURE RESEARCH School of Economics and Management TECNICAl. UNIVERSITY OF LISBON THE VALUE OF HEDGING THROUGH CORPORATE GOVERNANCE: A LITERATURE REVIEW AND DIRECTIONS FOR FUTURE RESEARCH Maria Jofio Jorge School of Technology

More information

CURRENT CONTEXT OF USING DERIVATIVES AS RISK MANAGEMENT TECHNIQUE OF SRI LANKAN LISTED COMPANIES

CURRENT CONTEXT OF USING DERIVATIVES AS RISK MANAGEMENT TECHNIQUE OF SRI LANKAN LISTED COMPANIES International Journal of Business and General Management (IJBGM) ISSN(P): 2319-2267; ISSN(E): 2319-2275 Vol. 2, Issue 5, Nov 2013, 1-10 IASET CURRENT CONTEXT OF USING DERIVATIVES AS RISK MANAGEMENT TECHNIQUE

More information

ON THE DETERMINANTS OF FOREIGN EXCHANGE DERIVATIVE USAGE BY LARGE INDIAN FIRMS

ON THE DETERMINANTS OF FOREIGN EXCHANGE DERIVATIVE USAGE BY LARGE INDIAN FIRMS IJEBR : Vol. 6, No. 1, June 2016 ON THE DETERMINANTS OF FOREIGN EXCHANGE DERIVATIVE USAGE BY LARGE INDIAN FIRMS B. Charumathi Department of Management Studies, School of Management, Pondicherry University,

More information

Derivative Instruments and Their Use For Hedging by U.S. Non-Financial Firms: A Review of Theories and Empirical Evidence

Derivative Instruments and Their Use For Hedging by U.S. Non-Financial Firms: A Review of Theories and Empirical Evidence Journal of Applied Business and Economics Derivative Instruments and Their Use For Hedging by U.S. Non-Financial Firms: A Review of Theories and Empirical Evidence Hong V. Nguyen University of Scranton

More information

The Use of Foreign Currency Derivatives and Firm Value In U.S.

The Use of Foreign Currency Derivatives and Firm Value In U.S. The Use of Foreign Currency Derivatives and Firm Value In U.S. Master thesis Rui Zhang ANR: 484834 23 Aug 2012 International Management Faculty of Economics and Business Administration Supervisor: Dr.

More information

What Motivates Insurers to Use Derivatives: Evidence from the United Kingdom Life Insurance Industry

What Motivates Insurers to Use Derivatives: Evidence from the United Kingdom Life Insurance Industry The Geneva Papers, 2011, 36, (186 196) r 2011 The International Association for the Study of Insurance Economics 1018-5895/11 www.genevaassociation.org What Motivates Insurers to Use Derivatives: Evidence

More information

The Determinants of Corporate Hedging and Firm Value: An Empirical Research of European Firms

The Determinants of Corporate Hedging and Firm Value: An Empirical Research of European Firms The Determinants of Corporate Hedging and Firm Value: An Empirical Research of European Firms Ying Liu S882686, Master of Finance, Supervisor: Dr. J.C. Rodriguez Department of Finance, School of Economics

More information

Available online at ScienceDirect. Procedia Economics and Finance 30 ( 2015 )

Available online at   ScienceDirect. Procedia Economics and Finance 30 ( 2015 ) Available online at www.sciencedirect.com ScienceDirect Procedia Economics and Finance 30 ( 2015 ) 768 779 3rd Economics & Finance Conference, Rome, Italy, April 14-17, 2015 and 4th Economics & Finance

More information

How Much do Firms Hedge with Derivatives?

How Much do Firms Hedge with Derivatives? How Much do Firms Hedge with Derivatives? Wayne Guay The Wharton School University of Pennsylvania 2400 Steinberg-Dietrich Hall Philadelphia, PA 19104-6365 (215) 898-7775 guay@wharton.upenn.edu and S.P.

More information

ERIM REPORT SERIES RESEARCH IN MANAGEMENT. ERIM Report Series reference number ERS F&A. Number of pages 39

ERIM REPORT SERIES RESEARCH IN MANAGEMENT. ERIM Report Series reference number ERS F&A. Number of pages 39 THE IMPACT OF INSTITUTIONAL DIFFERENCES ON DERIVATIVES USAGE: A COMPARATIVE STUDY OF US AND DUTCH FIRMS GORDON M. BODNAR, ABE DE JONG AND VICTOR MACRAE ERIM REPORT SERIES RESEARCH IN MANAGEMENT ERIM Report

More information

WHY DO RISK NEUTRAL FIRMS HEDGE?

WHY DO RISK NEUTRAL FIRMS HEDGE? WHY DO RISK NEUTRAL FIRMS HEDGE? A REVIEW OF THE LITERATURE Emanuel Viklund Major in Finance Stockholm School of Economics Jacob Zachrison Major in Accounting Stockholm School of Economics Abstract According

More information

University of Groningen. Risk-adjusted performance measures and implied risk-attitudes Plantinga, Auke; Groot, Sebastiaan de

University of Groningen. Risk-adjusted performance measures and implied risk-attitudes Plantinga, Auke; Groot, Sebastiaan de University of Groningen Risk-adjusted performance measures and implied risk-attitudes Plantinga, Auke; Groot, Sebastiaan de IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's

More information

The Theory and Practice of Corporate Risk Management: Evidence from the Field

The Theory and Practice of Corporate Risk Management: Evidence from the Field The Theory and Practice of Corporate Risk Management: Evidence from the Field Erasmo Giambona, John R. Graham, Campbell R. Harvey, and Gordon M. Bodnar We survey more than 1,100 risk managers from around

More information

Interest rate swap usage for hedging and speculation by. Dutch listed non-financial firms

Interest rate swap usage for hedging and speculation by. Dutch listed non-financial firms Interest rate swap usage for hedging and speculation by Dutch listed non-financial firms Master Thesis: Business Administration Track: Financial Management University of Twente Faculty of Behavioral, Management

More information

If the market is perfect, hedging would have no value. Actually, in real world,

If the market is perfect, hedging would have no value. Actually, in real world, 2. Literature Review If the market is perfect, hedging would have no value. Actually, in real world, the financial market is imperfect and hedging can directly affect the cash flow of the firm. So far,

More information

RISK MANAGEMENT AND CORPORATE VALUE

RISK MANAGEMENT AND CORPORATE VALUE Economic Horizons, September - December 2015, Volume 17, Number 3, 215-228 Faculty of Economics, University of Kragujevac UDC: 33 eissn 2217-9232 www. ekfak.kg.ac.rs Review paper UDC: 005.334:; 005.52:330.133.1;

More information

The Role of Derivatives in corporate risk management. Introduction: Basics of Derivatives:

The Role of Derivatives in corporate risk management. Introduction: Basics of Derivatives: The Role of Derivatives in corporate risk management Introduction: Basics of Derivatives: Derivatives are financial instruments that are mainly used to protect against and manage risks, very often also

More information

The Impact of Corporate Hedging on Stock Price Performance

The Impact of Corporate Hedging on Stock Price Performance The Impact of Corporate Hedging on Stock Price Performance Nicholas Richard Towle A research project submitted to the Gordon Institute of Business Science, University of Pretoria, in partial fulfilment

More information

How Does the Selection of Hedging Instruments Affect Company Financial Measures? Evidence from UK Listed Firms

How Does the Selection of Hedging Instruments Affect Company Financial Measures? Evidence from UK Listed Firms How Does the Selection of Hedging Instruments Affect Company Financial Measures? Evidence from UK Listed Firms George Emmanuel Iatridis (Corresponding author) University of Thessaly, Department of Economics,

More information

Inflation Risk, Hedging, and Exports

Inflation Risk, Hedging, and Exports Review of Development Economics, 5(3), 355 362, 2001 Inflation Risk, Hedging, and Exports Harald L. Battermann and Udo Broll* Abstract This paper analyzes optimal production and hedging decisions of a

More information

Measuring Efficiency of Using Currency Derivatives to Hedge Foreign Exchange Risk: A Study on Advanced Chemical Industries (ACI) in Bangladesh

Measuring Efficiency of Using Currency Derivatives to Hedge Foreign Exchange Risk: A Study on Advanced Chemical Industries (ACI) in Bangladesh International Journal of Economics, Finance and Management Sciences 2016; 4(2): 57-66 Published online March 7, 2016 (http://www.sciencepublishinggroup.com/j/ijefm) doi: 10.11648/j.ijefm.20160402.14 ISSN:

More information

Interest Rate Swaps and Nonfinancial Real Estate Firm Market Value in the US

Interest Rate Swaps and Nonfinancial Real Estate Firm Market Value in the US Interest Rate Swaps and Nonfinancial Real Estate Firm Market Value in the US Yufeng Hu Senior Thesis in Economics Professor Gary Smith Spring 2018 1. Abstract In this paper I examined the impact of interest

More information

The foreign exchange exposure of UK non-financial firms: A comparison of marketbased methodologies

The foreign exchange exposure of UK non-financial firms: A comparison of marketbased methodologies The foreign exchange exposure of UK non-financial firms: A comparison of marketbased methodologies By Sam Agyei-Ampomah a, Khelifa Mazouz b and Shuxing Yin c a Surrey Business School b Bradford University

More information

Interest Rate Hedging under Financial Distress: The Effects of Leverage and Growth Opportunities

Interest Rate Hedging under Financial Distress: The Effects of Leverage and Growth Opportunities University of Massachusetts - Amherst ScholarWorks@UMass Amherst International CHRIE Conference-Refereed Track 2009 ICHRIE Conference Jul 29th, 3:15 PM - 4:15 PM Interest Rate Hedging under Financial Distress:

More information

Two essays on corporate hedging: the choice of instruments and methods

Two essays on corporate hedging: the choice of instruments and methods Louisiana State University LSU Digital Commons LSU Doctoral Dissertations Graduate School 2003 Two essays on corporate hedging: the choice of instruments and methods Pinghsun Huang Louisiana State University

More information

How do Croatian Companies make Corporate Risk Management Decisions: Evidence from the Field

How do Croatian Companies make Corporate Risk Management Decisions: Evidence from the Field Trg J. F. Kennedya 6 10000 Zagreb, Croatia Tel +385(0)1 238 3333 http://www.efzg.hr/wps wps@efzg.hr WORKING PAPER SERIES Paper No. 07-13 Danijela Miloš Sprčić How do Croatian Companies make Corporate Risk

More information

How much do firms hedge with derivatives? $

How much do firms hedge with derivatives? $ Journal of Financial Economics 70 (2003) 423 461 How much do firms hedge with derivatives? $ Wayne Guay a, S.P Kothari b, * a The Wharton School, University of Pennsylvania, Philadelphia, PA 19104-6355,

More information

A Firm-Specific Analysis of Taiwan Foreign Exchange Rate Exposure: A Panel Data Approach

A Firm-Specific Analysis of Taiwan Foreign Exchange Rate Exposure: A Panel Data Approach A Firm-Specific Analysis of Taiwan Foreign Exchange Rate Exposure: A Panel Data Approach R. F. Franck Varga 1 Department of Global Political Economy Tamkang University, Lanyang Campus, 180 Linwei Road,Jiaoshi,

More information

The Strategic Motives for Corporate Risk Management

The Strategic Motives for Corporate Risk Management April 2004 The Strategic Motives for Corporate Risk Management Amrita Nain* Abstract This paper investigates how the benefits of hedging currency risk and the incentives of a firm to hedge are affected

More information

JOURNAL ARTICLES: Compensation and Board Structure: Evidence from the Insurance Industry with D. Mayers, Journal of Risk and Insurance (forthcoming).

JOURNAL ARTICLES: Compensation and Board Structure: Evidence from the Insurance Industry with D. Mayers, Journal of Risk and Insurance (forthcoming). JOURNAL ARTICLES: Compensation and Board Structure: Evidence from the Insurance Industry with D. Mayers, Journal of Risk and Insurance (forthcoming). Using Organizational Architecture to Lead Change with

More information

Journal of Financial and Strategic Decisions Volume 13 Number 2 Summer 2000 MANAGERIAL COMPENSATION AND OPTIMAL CORPORATE HEDGING

Journal of Financial and Strategic Decisions Volume 13 Number 2 Summer 2000 MANAGERIAL COMPENSATION AND OPTIMAL CORPORATE HEDGING Journal of Financial and Strategic Decisions Volume 13 Number 2 Summer 2000 MANAGERIAL COMPENSATION AND OPTIMAL CORPORATE HEDGING Steven B. Perfect *, Kenneth W. Wiles and Shawn D. Howton ** Abstract This

More information

Financial Economics.

Financial Economics. Financial Economics Email: yaojing@fudan.edu.cn 2015 2 http://homepage.fudan.edu.cn/yaojing/ ( ) 2015 2 1 / 31 1 2 3 ( ) Asset Pricing and Portfolio Choice = + ( ) 2015 2 3 / 31 ( ) Asset Pricing and Portfolio

More information

Ahmad Bash. Tel: Abstract

Ahmad Bash.   Tel: Abstract TO HEDGE OR NOT TO HEDGE FOREIGN EXCHANGE EXPOSURE: A GCC PERSPECTIVE Ahmad Bash School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia Email: ahmad.bash@rmit.edu.au Tel: +61

More information

Why Firms Use Non-Linear Hedging Strategies

Why Firms Use Non-Linear Hedging Strategies Why Firms Use Non-Linear Hedging Strategies Tim Adam Hong Kong University of Science & Technology January 2003 Abstract This paper examines how firms hedge, what instruments firms use and whether there

More information

Citation Journal of Derivatives Accounting, 2005, v. 2 n. 1, p

Citation Journal of Derivatives Accounting, 2005, v. 2 n. 1, p Title Operating Leverage and the Interaction between Abandonment Options and Exotic Hedging Author(s) Wong, KP Citation Journal of Derivatives Accounting, 2005, v. 2 n. 1, p. 87-96 Issued Date 2005 URL

More information

Restricted Export Flexibility and Risk Management with Options and Futures

Restricted Export Flexibility and Risk Management with Options and Futures Restricted Export Flexibility and Risk Management with Options and Futures Axel F. A. Adam-Müller Center of Finance and Econometrics Department of Economics University of Konstanz, D - 78457 Konstanz,

More information

Corporate Finance (ECON W4280)

Corporate Finance (ECON W4280) Tri Vi Dang Columbia University td2332@columbia.edu Fall 2015 Corporate Finance (ECON W4280) Meeting time: Tu, Th 4.10-5.25 Meeting place: Hamilton 702 Office address: IAB 1032 Office hours: Th 11.30-12.30

More information

World Scientific Handbook in Financial Economics Series Vol. 4 HANDBOOK OF FINANCIAL. Editors. Leonard C MacLean

World Scientific Handbook in Financial Economics Series Vol. 4 HANDBOOK OF FINANCIAL. Editors. Leonard C MacLean World Scientific Handbook in Financial Economics Series Vol. 4 HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING on Editors Leonard C MacLean Dalhousie University, Canada (Emeritus) William T Ziemba

More information

Advanced Risk Management

Advanced Risk Management Winter 2015/2016 Advanced Risk Management Part I: Decision Theory and Risk Management Motives Lecture 4: Risk Management Motives Perfect financial markets Assumptions: no taxes no transaction costs no

More information

Financial Derivatives at Community Banks

Financial Derivatives at Community Banks Financial Derivatives at Community Banks Xuan (Shelly) Shen Quantitative Analyst, Regions Financial Corporation 1 Valentina Hartarska Professor of Agricultural Economics and Rural Sociology, Auburn University

More information

THE UNIVERSITY OF NEW SOUTH WALES

THE UNIVERSITY OF NEW SOUTH WALES THE UNIVERSITY OF NEW SOUTH WALES FINS 5574 FINANCIAL DECISION-MAKING UNDER UNCERTAINTY Instructor Dr. Pascal Nguyen Office: #3071 Email: pascal@unsw.edu.au Consultation hours: Friday 14:00 17:00 Appointments

More information

A Review of the Literature on Commodity Risk Management for Nonfinancial Firms

A Review of the Literature on Commodity Risk Management for Nonfinancial Firms A Review of the Literature on Commodity Risk Management for Nonfinancial Firms Presentation by: Betty J. Simkins, Ph.D. Williams Companies Chair & Professor of Finance Department Head of Finance Oklahoma

More information

Examining RADR as a Valuation Method in Capital Budgeting

Examining RADR as a Valuation Method in Capital Budgeting Examining RADR as a Valuation Method in Capital Budgeting James R. Scott Missouri State University Kee Kim Missouri State University The risk adjusted discount rate (RADR) method is used as a valuation

More information

Business F770 Financial Economics and Quantitative Methods Fall 2012 Course Outline 1. Mondays 2 6:00 9:00 pm DSB/A102

Business F770 Financial Economics and Quantitative Methods Fall 2012 Course Outline 1. Mondays 2 6:00 9:00 pm DSB/A102 F770 Fall 0 of 8 Business F770 Financial Economics and Quantitative Methods Fall 0 Course Outline Mondays 6:00 9:00 pm DSB/A0 COURSE OBJECTIVE This course explores the theoretical and conceptual foundations

More information

Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission.

Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. Corporate Insurance and the Underinvestment Problem Author(s): David Mayers and Clifford W. Smith, Jr. Source: The Journal of Risk and Insurance, Vol. 54, No. 1, (Mar., 1987), pp. 45-54 Published by: American

More information

Hedging, speculation and shareholder value

Hedging, speculation and shareholder value Hedging, speculation and shareholder value Tim R. Adam Department of Finance Hong Kong University of Science and Technology Clear Water Bay, Kowloon Hong Kong Tel.: (852) 2358-7675 Fax: (852) 2358-1749

More information

APPLICATION OF CAPITAL ASSET PRICING MODEL BASED ON THE SECURITY MARKET LINE

APPLICATION OF CAPITAL ASSET PRICING MODEL BASED ON THE SECURITY MARKET LINE APPLICATION OF CAPITAL ASSET PRICING MODEL BASED ON THE SECURITY MARKET LINE Dr. Ritika Sinha ABSTRACT The CAPM is a model for pricing an individual security (asset) or a portfolio. For individual security

More information

Asset Pricing(HON109) University of International Business and Economics

Asset Pricing(HON109) University of International Business and Economics Asset Pricing(HON109) University of International Business and Economics Professor Weixing WU Professor Mei Yu Associate Professor Yanmei Sun Assistant Professor Haibin Xie. Tel:010-64492670 E-mail:wxwu@uibe.edu.cn.

More information

The evolution and the prospects of contemporary financial instruments in Greece: The case of swaps

The evolution and the prospects of contemporary financial instruments in Greece: The case of swaps The evolution and the prospects of contemporary financial instruments in Greece: The case of swaps Agorasti Olympia, Blanas George Department of Business Administration, TEI of Larissa, GR Pavlos Golemis

More information

Luis Otero González * Sara Fernández López. Onofre Martorell Cunill

Luis Otero González * Sara Fernández López. Onofre Martorell Cunill Hedging with Derivatives and Value Creation : an Empirical Examination in the Insurance Industry Luis Otero González * Sara Fernández López Onofre Martorell Cunill Abstract This paper aims to analyze the

More information

Determinants of exchange rate hedging an empirical analysis of U.S. small-cap industrial firms

Determinants of exchange rate hedging an empirical analysis of U.S. small-cap industrial firms University of Central Florida HIM 1990-2015 Open Access Determinants of exchange rate hedging an empirical analysis of U.S. small-cap industrial firms 2011 Zachary M. Lehner University of Central Florida

More information

118 Bibliography [12] Byoun, S. and W.T. Moore, 2003, Stock vs. Stock-Warrant Units: Evidence from Seasoned Oerings, Journal of Corporate Finance 9, 5

118 Bibliography [12] Byoun, S. and W.T. Moore, 2003, Stock vs. Stock-Warrant Units: Evidence from Seasoned Oerings, Journal of Corporate Finance 9, 5 Bibliography [1] Bajo, E. and M. Barbi, 2007, The Risk-Shifting Eect and the Value of a Warrant, Unpublished Working Paper. [2] Barbi, M., 2008, La Valutazione dei Corporate Warrant: uno Studio Empirico

More information

Financial Derivatives usage by UK & Italian SMEs.

Financial Derivatives usage by UK & Italian SMEs. Financial Derivatives usage by UK & Italian SMEs. Empirical evidence from UK & Italian nonfinancial firms. Doctor of Philosophy Università degli Studi di Ferrara Giulia Fantini Abstract A number of studies

More information

Ederington's ratio with production flexibility. Abstract

Ederington's ratio with production flexibility. Abstract Ederington's ratio with production flexibility Benoît Sévi LASER CREDEN Université Montpellier I Abstract The impact of flexibility upon hedging decision is examined for a competitive firm under demand

More information

AGENCY THEORY AND IMPLICATIONS FOR FIRM FINANCING DECISIONS

AGENCY THEORY AND IMPLICATIONS FOR FIRM FINANCING DECISIONS INDUSTRIAL ECONOMICS AGENCY THEORY AND IMPLICATIONS FOR FIRM FINANCING DECISIONS COLM RYAN Senior Sophister In a lucid treatment of agency theory, which considers the relationship between two parties,

More information

THE EFFECT OF THE ENTERPRISE RISK MANAGEMENT IMPLEMENTATION ON THE FIRM VALUE OF EUROPEAN COMPANIES

THE EFFECT OF THE ENTERPRISE RISK MANAGEMENT IMPLEMENTATION ON THE FIRM VALUE OF EUROPEAN COMPANIES THE EFFECT OF THE ENTERPRISE RISK MANAGEMENT IMPLEMENTATION ON THE FIRM VALUE OF EUROPEAN COMPANIES Giorgio Stefano Bertinetti Full Professor of Corporate Finance Ca Foscari University of Venice Cannaregio

More information

Financial Crisis Effects on the Firms Debt Level: Evidence from G-7 Countries

Financial Crisis Effects on the Firms Debt Level: Evidence from G-7 Countries Financial Crisis Effects on the Firms Debt Level: Evidence from G-7 Countries Pasquale De Luca Faculty of Economy, University La Sapienza, Rome, Italy Via del Castro Laurenziano, n. 9 00161 Rome, Italy

More information

Finance (PO 2017) Finance (PO 2017) Bachelor Seminar. Prof. Dr. Marcel Prokopczuk. Institute for Financial Markets. Winter Term 2018/2019

Finance (PO 2017) Finance (PO 2017) Bachelor Seminar. Prof. Dr. Marcel Prokopczuk. Institute for Financial Markets. Winter Term 2018/2019 Finance (PO 2017) Bachelor Seminar Prof. Dr. Marcel Prokopczuk Institute for Financial Markets Winter Term 2018/2019 1 Requirements Preparation of a seminar paper on one s own or in groups of 2 Scope:

More information

Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers

Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers YANBO JIN and PHILIPPE JORION* ABSTRACT This paper studies the hedging activities of 119 U.S. oil and gas producers from 1998 to 2001 and

More information

FOREIGN CURRENCY DERIVATIES AND CORPORATE VALUE: EVIDENCE FROM CHINA

FOREIGN CURRENCY DERIVATIES AND CORPORATE VALUE: EVIDENCE FROM CHINA FOREIGN CURRENCY DERIVATIES AND CORPORATE VALUE: EVIDENCE FROM CHINA Robin Hang Luo ALHOSN University, UAE ABSTRACT Chinese Yuan, also known as Renminbi (RMB), has been appreciating more than 30% against

More information

Comparative Analysis of Corporate Risk Management Practices in Croatian and Slovenian Companies

Comparative Analysis of Corporate Risk Management Practices in Croatian and Slovenian Companies Zagreb International Review of Economics & Business, Vol. 11, No. 2, pp. 63-80, 2008 2008 Economics Faculty Zagreb All rights reserved. Printed in Croatia ISSN 1331-5609; UDC: 33+65 Comparative Analysis

More information

A View Inside Corporate Risk Management*

A View Inside Corporate Risk Management* A View Inside Corporate Risk Management* Gordon M. Bodnar Johns Hopkins University bodnar@jhu.edu John R. Graham Duke University & NBER john.graham@duke.edu Erasmo Giambona University of Amsterdam e.giambona@uva.nl

More information

Foreign Currency Derivatives and Firm Value

Foreign Currency Derivatives and Firm Value European Online Journal of Natural and Social Sciences 2016; www.european-science.com Vol.5, No.1 pp. 1-14 ISSN 1805-3602 Foreign Currency Derivatives and Firm Value Talat Afza and Atia Alam* COMSATS,

More information

Banking firm and hedging over the business cycle. Citation Portuguese Economic Journal, 2010, v. 9 n. 1, p

Banking firm and hedging over the business cycle. Citation Portuguese Economic Journal, 2010, v. 9 n. 1, p Title Banking firm and hedging over the business cycle Author(s) Broll, U; Wong, KP Citation Portuguese Economic Journal, 2010, v. 9 n. 1, p. 29-33 Issued Date 2010 URL http://hdl.handle.net/10722/124052

More information

Cash Holdings from a Risk Management Perspective

Cash Holdings from a Risk Management Perspective Department of Business Administration FEKN90, Business Administration Degree Project Master of Science in Business and Economics Spring 2015 Cash Holdings from a Risk Management Perspective - A study on

More information

The Value of Investing in ERM

The Value of Investing in ERM The Value of Investing in ERM By Richard D. Phillips C.V. Starr Professor of Risk Management and Insurance Georgia State University Martin F. Grace Georgia State University mgrace@gsu.edu Richard D. Phillips

More information

HEDGING WITH DERIVATIVES AND VALUE CREATION IN THE SPANISH INSURANCE INDUSTRY

HEDGING WITH DERIVATIVES AND VALUE CREATION IN THE SPANISH INSURANCE INDUSTRY HEDGING WITH DERIVATIVES AND VALUE CREATION IN THE SPANISH INSURANCE INDUSTRY Luis Otero González (eflaog@usc.es) Sara Fernández López (efsfl@usc.es) Department of Financial Economy Faculty of Business

More information

Topic 1: Basic Concepts in Finance. Slides

Topic 1: Basic Concepts in Finance. Slides Topic 1: Basic Concepts in Finance Slides What is the Field of Finance 1. What are the most basic questions? (a) Role of time and uncertainty in decision making (b) Role of information in decision making

More information

THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF BANKING AND FINANCE

THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF BANKING AND FINANCE THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF BANKING AND FINANCE SESSION 1, 2005 FINS 4774 FINANCIAL DECISION MAKING UNDER UNCERTAINTY Instructor Dr. Pascal Nguyen Office: Quad #3071 Phone: (2) 9385 5773

More information

Managerial Stock Options and the Hedging Premium

Managerial Stock Options and the Hedging Premium European Financial Management, Vol. 13, No. 4, 2007, 721 741 doi: 10.1111/j.1468-036X.2007.00380.x Managerial Stock Options and the Hedging Premium Niclas Hagelin The Swedish National Debt Office, SE-103

More information

FINANCIAL ECONOMICS 220: 393 J.P. Hughes Spring 2014 Office Hours 420 New Jersey Hall Monday 10:30-11:45 AM

FINANCIAL ECONOMICS 220: 393 J.P. Hughes Spring 2014 Office Hours 420 New Jersey Hall Monday 10:30-11:45 AM FINANCIAL ECONOMICS 220: 393 J.P. Hughes Spring 2014 Office Hours 420 New Jersey Hall Monday 10:30-11:45 AM jphughes@rci.rutgers.edu Wednesday 11:00-11:45 AM Other times by appointment Prerequisites: (Upper-Level

More information

The Determinants of Corporate Dividend Policy: Evidence from Palestine

The Determinants of Corporate Dividend Policy: Evidence from Palestine Journal of Finance and Investment Analysis, vol. 5, no. 4, 2016, 29-41 ISSN: 2241-0998 (print version), 2241-0996(online) Scienpress Ltd, 2016 The Determinants of Corporate Dividend Policy: Evidence from

More information

FINE 7100: Theory of Finance

FINE 7100: Theory of Finance Schulich School of Business York University FINE 7100: Theory of Finance Fall 2007 Instructor: Melanie Cao Time: M 2:30 5:30pm Secretary: Lucy Sirianni Office: Room N220 Location: S123 Room: N204A Phone:

More information

Financing Risk & Reinsurance

Financing Risk & Reinsurance JOHN A. MAJOR, GARY G. VENTER 1 Guy Carpenter & Co., Inc. Two World Trade Center New York, NY 10048 (212) 323-1605 john.major@guycarp.com Financing Risk & Reinsurance WHY TRANSFER RISK? Ever since Modigliani

More information

Currency Hedging for Multinationals under. Liquidity Constraints

Currency Hedging for Multinationals under. Liquidity Constraints Currency Hedging for Multinationals under Liquidity Constraints Rujing MENG, Kit Pong WONG University of Hong Kong This paper examines the impact of liquidity risk on the behavior of a risk-averse multinational

More information

CORPORATE GOVERNANCE AND THE HEDGING PREMIUM AROUND THE WORLD

CORPORATE GOVERNANCE AND THE HEDGING PREMIUM AROUND THE WORLD CORPORATE GOVERNANCE AND THE HEDGING PREMIUM AROUND THE WORLD George Allayannis Darden Graduate School of Business University of Virginia PO Box 6550 Charlottesville, VA 22906 (434) 924-3434 allayannisy@darden.virginia.edu

More information

Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers

Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers THE JOURNAL OF FINANCE VOL. LXI, NO. 2 APRIL 2006 Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers YANBO JIN and PHILIPPE JORION ABSTRACT This paper studies the hedging activities of 119

More information

Does Hedging Increase Firm Value?

Does Hedging Increase Firm Value? Master Programme in Finance Does Hedging Increase Firm Value? An Examination of Swedish Companies Author: Ngan Nguyen Supervisor: Ph.D. Håkan Jankengård ABSTRACT In an uncertain financial world, corporate

More information

Does Volatility Improve UK Earnings Forecasts?

Does Volatility Improve UK Earnings Forecasts? Does Volatility Improve UK Earnings Forecasts? Nikola Petrovic, Stuart Manson and Jerry Coakley Department of Accounting, Finance and Management, University of Essex Abstract: We investigate the relation

More information

DETERMINANTS OF CORPORATE HEDGING PRACTICES USED BY COMPANIES LISTED IN NAIROBI SECURITY EXCHANGE

DETERMINANTS OF CORPORATE HEDGING PRACTICES USED BY COMPANIES LISTED IN NAIROBI SECURITY EXCHANGE International Journal of Business Management & Finance, 1(5):73-92, April 2017 SERIAL PUBLISHERS, 2017 www. serialpublishers.com DETERMINANTS OF CORPORATE HEDGING PRACTICES USED BY COMPANIES LISTED IN

More information

The Effect of Hedging on Firm Value and Performance: Evidence from the Nonfinancial UK Firms. Hany Ahmed*, Alcino Azevedo 1, *, Yilmaz Guney*

The Effect of Hedging on Firm Value and Performance: Evidence from the Nonfinancial UK Firms. Hany Ahmed*, Alcino Azevedo 1, *, Yilmaz Guney* The Effect of Hedging on Firm Value and Performance: Evidence from the Nonfinancial UK Firms Hany Ahmed*, Alcino Azevedo 1, *, Yilmaz Guney* *Hull University Business School Cottingham Road, Hull HU6 7RX,

More information

The Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes

The Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes The Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes Mark Beasley Professor of Accounting and ERM Initiative Director Don Pagach Professor

More information

Noise in Ratings: Not Entirely Random. Author:

Noise in Ratings: Not Entirely Random. Author: Noise in Ratings: Not Entirely Random Author: Dr. Puneet Prakash 1 Assistant Professor Department of Finance, Insurance, and Real Estate Virginia Commonwealth University 1 Corresponding Author: Address:

More information