uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal …

We explore the effect of interest rates on risk taking and find that it depends on the type of risk involved. In a … prior is high. While both types of risk contribute symmetrically to the overall riskiness of an investment project, we show … that changes in interest rates affect risk taking in these two types of risk in opposite directions. This makes the net …

firm and the degree of risk aversion. -- Exchange rate risk ; trade ; futures market ; market transparency ; value of …