This research focuses on the ultimate impact of hedging effectiveness on firm performance. Successful risk management in firms should lead to a lesser occurrence of lower business outcomes than higher outcomes (e.g., positive skewness in quarterly earnings per share). We empirically estimate the...

The venture industry relies extensively on convertible contracts that allow VCs to convert their investments into an equity stake or a fixed debt position at a future date. We study convertible venture investments exposed to failure risk and valuation uncertainty using a double-hazard framework...

An important question for firm management and markets is whether superior capabilities to mitigate the impact of adverse business scenarios leads to higher firm performance and valuation. We address this question by using a new broadly applicable methodology based on the insight that effective...