This article describes the five-year implementation of enterprise risk management at Hydro One, a Canadian electric utility in a newly deregulated market. Starting with the creation of the position of Chief Risk Officer and the implementation of a pilot risk study involving one of the firm's...

A well-designed and carefully executed ERM program can increase firm value by strengthening the confidence of investors in management's ability to carry out its business plan-and, perhaps equally important, the rating agencies' confidence in the company's ability to meet its debt service-under...

This article discusses the findings and practical import of the authors' study of the fuel hedging activity of 28 U.S. airlines during the period 1992-2003. The aim of the study was to answer the following question: Does fuel hedging add value to the airlines and, if so, how? The airline...

We examine the effects of both financial and operational hedging on jet fuel exposure in the U.S. airline industry. Specifically, we investigate two operational hedging strategies: the extent to which airlines operate different aircraft types and the degree to which airlines operate...

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...

This impressive Handbook presents the quantitative techniques that are commonly employed in empirical finance research together with real-world, state-of-the-art research examples.

For a variety of reasons, the U.S. airline industry is a natural sample to analyze the relation between corporate risk exposure, hedging policy, and firm value. First, we find that airline exposures to fuel prices are higher when fuel prices are high or when they are rising. Second, we analyze...

We provide new evidence on the motives for corporate hedging by examining the relation between the quality of the firms' monitoring mechanisms and the quantity of interest rate derivatives employed. Because the capital structure decision and hedging decision are considered to be endogenous, the...