Using a large panel of UK public firms, we examine the relationship between the financial risk hedging and the cost of … is priced in investors’ expectations. While financial risk hedging serves as a vehicle for firms to alleviate cash flows … addition, we hypothesize and test whether the nature of relation between financial risk hedging and cost of equity capital …

capital cost can be reduced by hedging longevity risk with longevity swaps, a form of reinsurance. We assess the costs of … reasonable market price of longevity risk, the market cost of hedging longevity risk for earlier ages is lower than the cost of … capital required under Solvency II. Longevity swaps covering higher ages, around 90 and above, have higher market hedging …

capital cost can be reduced by hedging longevity risk with longevity swaps, a form of reinsurance. We assess the costs of … reasonable market price of longevity risk, the market cost of hedging longevity risk for earlier ages is lower than the cost of … capital required under Solvency II. Longevity swaps covering higher ages, around 90 and above, have higher market hedging …

This paper develops a theory of corporate hedging in a financial contracting framework. In an economy with moral hazard … holding equity, hedging mitigates incentive problems related to debt contracts and, thus, lowers the cost of debt and enables … consistent with extant empirical evidence. For example, hedging will be more likely to be used with bank finance than with non …

The paper investigates the relationship between corporate hedging and product market competition. Using a broad sample …