Why should firms hedge?-Review on Corporate Risk Management

摘要：

　　Most firms employ risk management policies to protect profits from market risks such as interest risk,foreign exchange risk and commodity price risk,etc.The existent literature has discussed the rationales of hedging extensively from perspective both of shareholders and managers.It is pronounced to realize the source of hedging benefits in order to determine an optimal risk management strategy.This paper claims that the key factor that makes hedging valuable is the convexity in transaction costs which inherent with market imperfection.This paper analyzes the convexities (concavity) of various cost (utility) functions and clarifies the sources of hedging benefits.

关键词： Hedging Risk Management Value Increasing

作者: HUANG Jie

作者单位: Corporate Finance institute,Humboldt Universit(a)tzu Berlin,Berlin,Germany,10117

会议类型: 国际会议

会议名称: the 5th (2013)International Conference on Financial Risk and Corporate Finance Management(第五届(2013)金融风险与公司金融国际研讨会)

会议地点: 大连

会议语种:英文

页码: 812-817

在线出版日期: 2013-06-29（万方平台首次上网日期，不代表论文的发表时间）