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Derivatives are the major icon among risk management practices. Firms usually use derivatives to hedge their foreign … usage in risk management particularly with respect to Pakistan, as the political and economic conditions in Pakistan are … highly volatile which intends the corporations to handle and mitigate their risk through channelizing the derivatives …
Persistent link: https://www.econbiz.de/10013050354
Persistent link: https://www.econbiz.de/10013115761
For 366 large non-financial U.K. firms, this paper reports the factors that are important in determining their decision to hedge foreign currency exposure. The results provide strong evidence of a relationship between expected financial distress costs and the foreign currency hedging decision...
Persistent link: https://www.econbiz.de/10010937146
investigated derivatives usage for risk management purposes in the US (see, among others, Bodnar, Hayt, Marston and Smithson, 1995 … tend to rely on OTC-transactions, US firms use exchange-traded derivatives and therefore require a higher counter party … rating for derivatives transactions. This distinction can be accredited to the differences in the financial environments …
Persistent link: https://www.econbiz.de/10011092330
In this paper we derive an exposure-based measure of Cash-Flow-at-Risk (CFaR). Existing approaches to calculating CFaR either only focus on cash flow conditional on market changes or neglect market-risk exposures entirely. We argue here that an essential first step in a risk-management program...
Persistent link: https://www.econbiz.de/10010320137
In this paper we derive an exposure-based measure of Cash-Flow-at-Risk (CFaR). Existing approaches to calculating CFaR either only focus on cash flow conditional on market changes or neglect market-risk exposures entirely. We argue here that an essential first step in a risk-management program...
Persistent link: https://www.econbiz.de/10005645295
Using a sample of 124 countries assisted by China from 2000 to 2019, this paper examines the impact of foreign aid on outward foreign direct investment (OFDI) and the mitigation mechanism of risk. The research finds that, first, foreign aid can significantly reduce the country risk of recipient...
Persistent link: https://www.econbiz.de/10014289477
Each year one in every five foreign direct investment dollars in the Global South flows through project finance transactions. These transactions consist of large-scale energy and infrastructure projects, and consistently produce deleterious effects on third parties. Until now, much of the legal...
Persistent link: https://www.econbiz.de/10013121604
This technical note provides an overview of Mexico’s derivatives markets, and describes concisely the derivatives … derivatives market in Mexico is the over-the-counter (OTC) derivatives market, which is fully integrated with the global … derivatives market. The origin of the OTC derivatives market can be traced back to the 1994 Mexican crisis that forced Mexico to …
Persistent link: https://www.econbiz.de/10011243042
The paper proposes a framework for examining the process of financial market development. The framework, consistent with the functional view of financial system design, is anchored in studying the incentives facing the key players in financial markets-borrowers, lenders, liquidity providers, and...
Persistent link: https://www.econbiz.de/10008528687