Firm value is influenced in many direct and indirect ways by financial risks which consist in
unexpected changes of foreign exchange rates, interest rates and commodity prices. The …

There are two tax incentives for corporations to hedge: to increase debt capacity and interest
tax deductions, and to reduce expected tax liability if the tax function is convex. We test …

For 234 large non-financial corporations using derivatives, we report the magnitude of their
risk exposure hedged by financial derivatives. If interest rates, currency exchange rates, and …

Theory predicts that nonfinancial corporations might use derivatives to lower financial
distress costs, coordinate cash flows with investment, or resolve agency conflicts between …

This paper analyzes the insurability of pandemic risk and outlines how underwriting policies
and scenario analysis are used to build resilience upfront and plan contingency actions for …

The appropriateness of financial reporting rules for derivative securities depends on
corporations' reasons for using the instruments. Empirically, little is documented about how …

For corporations facing tax‐function convexity, hedging lowers expected tax liabilities,
thereby providing an incentive to hedge. We use simulation methods to investigate convexity …

Integrates essential risk management practices with practical corporate business strategies
Focusing on educating readers on how to integrate risk management with corporate …

An analysis of the links between risk management and value creation Risk Management
and Value Creation in Financial Institutions explores a variety of methods that can be utilized …

This paper surveys the currency risk management practices of Swiss industrial corporations.
We find that industrials are unable to quantify their currency risk exposure and investigate …