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Hedging, Hedge Accounting, and Earnings Predictability

SSRN Electronic Journal, 2021
Studies suggest that, pursuant to the implementation of SFAS 133, even sophisticated users of financial statements find it difficult to comprehend earnings implications of hedging derivatives. Moreover, due to stringent hedge accounting requirements under these standards, many economic hedges do not qualify for hedge accounting and are deemed ...
Tharindra Ranasinghe   +2 more
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To Hedge or Not to Hedge

Asian Survey
During President Yoon Suk-yeol’s leadership, South Korea reaffirmed alignment with the United States, supported the US-led Free and Open Indo-Pacific strategy, and embraced “strategic clarity” by abandoning the “strategic ambiguity” and hedging approach of the Moon Jae-in administration. President Yoon’s impeachment following his declaration of martial
Lily Ferguson, Kambiz Kazemi
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Do Hedge Funds Hedge?

The Journal of Portfolio Management, 2001
In addition to attractive returns, many hedge funds claim to provide significant diversification for traditional portfolios. This paper empirically examines the return and diversification benefits of hedge fund investing using the CSFB/Tremont hedge fund indices from 1994-2000.
Cliff S. Asness   +2 more
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To Hedge or Not to Hedge

Cornell Hospitality Quarterly, 2009
This article studies whether foreign exchange risk can be reduced by operational controls. Specifically, revenue management practices for five international markets are analyzed over a period of more than six years. Results show that ADR (average daily rate), RevPAR (revenue per available room), and occupancy improve in weak currency environments to ...
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Corporate Incentives for Hedging and Hedge Accounting

Review of Financial Studies, 1995
This article explores the information effect of financial risk management. Financial hedging improves the informativeness of corporate earnings as a signal of management ability and project quality by eliminating extraneous noise. Managerial and shareholder incentives regarding information transmission may differ, however, leading to conflicts ...
DeMarzo, Peter M, Duffie, Darrell
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Retirement as a Hedge [PDF]

open access: possibleSSRN Electronic Journal, 2010
This paper explores the effect of letting individuals choose their retirement age in a world of uncertainty where there exist both defined benefit (DB) and defined contribution (DC) pension plans. The paper shows that giving individuals the flexibility to determine when to retire is an important tool for them when they are hedging against future ...
PESTIEAU, Pierre, POSSEN, Uri M.
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The Risk Of Hedging

ECMS 2023 Proceedings edited by Enrico Vicario, Romeo Bandinelli, Virginia Fani, Michele Mastroianni, 2023
Hedging financial risk is an essential issue but is far from trivial to implement. There are several hedging assets portfolio managers can select from. However, the choice is not without weight: two portfolios hedged against the same risk factor may have different characteristics depending on this hedging asset.
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