Financeprofessor
Why corporations hedge (the theory)
- Autor: Vários
- Narrador: Vários
- Editora: Podcast
- Duração: 0:08:04
- Mais informações
Informações:
Sinopse
Shareholders' payoff looks like that of a call holder. Calls appreciate with volatility. So why do firms hedge? There are many reasons (at least theoretically): It makes contracting easier, it makes it easier to hire people, lowers the cost of debt, lowers expected bankruptcy costs, and lowers expected taxes.