Hydro One Inc. is widely regarded as having had one of the most successful implementations of enterprise risk management (ERM). The purpose of this article is to record the history of this successful implementation so that it will benefit other companies and organizations who are at the...

We investigate analyst forecasts in a unique setting, the natural gas storage market, and study the contribution of analysts in facilitating price discovery in futures markets. Using a high‐frequency database of analyst storage forecasts, we show that the market appears to condition...

In this article the usage of synthetic fixed‐rate financing (SFRF) with interest rate swaps (i.e., borrowing short‐term and using swaps to hedge interest rate risk, instead of selecting conventional fixed‐rate financing) by Fortune 500 and S&P 500 nonfinancial firms is examined over the...

The managerial pay-performance nexus is more accurately described by defining compensation as a discounted annuity occurring over the life of a contract. A unique NCAA football setting enables us to observe a coach's entire professional history, as well as all contract compensation components....

In this study, we aim to build better risk models for energy commodities by employing statistical procedures to identify outliers in the prices for all crude oil and natural gas futures contracts traded on the CME over the period of December 2003 through March 2017. Our results show that it is...

This paper investigates the stock market performance from the second half of February through the latter portion of March 2020 for U.S. travel-related firms (airlines, restaurants, and hotels) in response to the COVID-19 pandemic. Clearly the reduction in travel was negative news for the travel...

This paper describes an innovative Excel spreadsheet model, referred to as the Retrospective Method Spreadsheet, that has been successfully used in risk management and insurance, and personal finance courses to demonstrate the retrospective life insurance method. There are numerous pedagogic...

Set in June 2001, the case places the student in the role of Scott Topping, Director of Corporate Finance at Southwest Airlines. Scott is responsible for the airline's fuel hedging program. The case describes the importance of jet fuel hedging in the airline industry, the volatility of jet fuel...

This paper investigates the fuel hedging behavior of firms in the US airline industry during 1994-2000 to examine whether such hedging is a source of value for these companies. The investment climate in the airline industry conforms well to the theoretic framework of Froot, Scharfstein, and...

On September 11, 2001, terrorists launched a devastating attack against the United States using commercial airliners loaded with jet fuel as weapons. Using the multivariate regression model methodology, we investigate the reaction of airline stock prices to the attack. We test whether the market...