This study analyzes foreign currency hedging activity of U.S. multinational firms to determine if these firms hedge exchange rate risk to overcome an underinvestment problem. Previous research on this problem shows that firms' investment opportunities help to explain exchange rate risk hedging....

This paper analyzes derivative security positions reflecting the corporate risk management policies of 44 companies from the gold mining industry. We document substantial time-series variation in risk management policies. For most firms, little of this variation in hedge ratios is explained by...

Grupo Carso S.A. de C.V., is a Mexican holding company with a diversified investment portfolio in automotive parts, construction materials, tobacco, mining, tourism, restaurants and retail. This publicly held diversified company presents a unique opportunity for study of the effects and...

This paper analyzes derivative security positions reflecting the corporate risk management policies of 48 companies from three different industries. There exists substantial time-series variation in risk management policies among firms in each industry. Very little of the variation in hedge...