Wir freuen uns, für Dienstag, 30. Mai 2017, ein Brown Bag Seminar mit Yuri Tserlukevich (Arizona State University) ankündigen zu können.

Die Veranstaltung findet in TC.5.04 von 12:00 bis 13:00 statt.

Titel: "Embracing Risk: Hedging Policy for Firms with Real Options" (gemeinsam mit Ilona Babenko)

Abstract - This study analyzes the dynamic risk management policy of a firm that faces a tradeoff between minimizing the costs of financial distress and maximizing financing for investment. Costly external financing of investment discourages hedging because of the option to abandon investment at low profitability and the option to expand investment at high profitability. Our theory generates results consistent with actual policies, without relying on the costs of risk management. First, we show that firms with safe assets and fewer growth options can choose to hedge more aggressively than firms with risky assets. Second, firms prefer to hedge systematic rather than firm-specific risk, even when hedging technologies for both types of risk are available. Third, risk is optimal at lower net worth. Therefore, more constrained firms may appear to hedge less aggressively.