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 fact …

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

Using a large sample of nonfinancial firms from 47 countries, we examine the effect of derivative
use on firm risk and value. We control for endogeneity by matching users and nonusers …

Theory predicts sizeable exchange rate (FX) exposure for many firms. However, empirical
research has not documented such exposures. To examine this discrepancy, we extend prior …

US stocks are more volatile than stocks of similar foreign firms. A firm's stock return volatility
can be higher for reasons that contribute positively (good volatility) or negatively (bad …

This paper provides a broad analysis of the effect of the current financial crisis on global
equity markets and their major components. We also examine the magnitude of the crisis in …

A time-varying copula model is used to investigate the impact of the introduction of the Euro
on the dependence between 17 European stock markets during the period 1994–2003. The …

Although theory suggests that corporate hedging can increase shareholder value in the
presence of capital market imperfections, empirical studies show overall mixed support for …

We document that localized policies aimed at mitigating climate risk can have unintended
consequences due to regulatory arbitrage by firms. Using a difference-in-differences …

Purpose – Based on basic financial models and reports in the business press, exchange rate
movements are generally believed to affect the value of nonfinancial firms. In contrast, the …