I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the …

to higher delinquencies and interest rates, while exports are unaffected. Natural and financial hedging successfully mute …

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 …

sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …), however, play a larger role for constrained firms with the effects being strongest in case of low hedging needs. Interestingly …, constrained firms with low hedging needs are found to employ more debt to finance their investment opportunities and build up …

hedging Second, the firm manages its capital structure through dividend distributions and investment. When leverage is low …

mediates the relation between corporate financial hedging and firm value. In this regard, active risk management positively …, capital structure and financial hedging decisions appear rather as complements instead of substitutes. This implies that … management to carry out profitable projects and research and development activities. Overall, corporate hedging is especially …

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 …

This paper provides a theory of debt and hedging based on human capital. We distinguish human capital from physical … information concerning costs, the only viable solution has the firm issuing debt to outsiders and hedging …