CEO Entrenchment and Corporate Hedging: Evidence from the Oil and Gas Industry. The extent of risk management (hedging intensity) is positively related to factors that amplify entrenchment and free cash flow agency costs, such as long CEO tenure, high CEO stock ownership, and weak board governance. There is also robust evidence that hedging is motivated by the reduction of financial distress and borrowing costs, and is influenced by both intrinsic cash flow risk and temporary spikes in commodity price volatility.
There are two types of hedge recognized. For a fair value hedge, the offset is achieved either by marking-to-market an asset or a liability which offsets the P&L movement of the derivative.
At University of Arizona since 1991. Teaching Preferences. Teaches following Subjects/Exams.
Books on complex hedging instruments are often more confusing than the instruments themselves.
Описание: Books on complex hedging instruments are often more confusing than the instruments themselves.
AUTHOR: Trombley, Mark A. Year: 2003. PUBLISHER/PLACE OF PUBLISHER: McGraw Hill Higher Education New York.
Accounting for Derivatives and Hedging, by Mark Trombley, is a short (250-page) supplement for Advanced Accounting and other upper level accounting courses. While many books used for these courses contain some coverage of Derivatives, professors must spend valuable time preparing their own materials in order to thoroughly cover this complex subject. Trombley's text provides the desired information and detail, allowing faculty to cover derivatives in class without a lot of prep work. Using simple but realistic examples, Trombley explains options, forwards, futures, swaps, and other types of derivatives, and helps students understand applications of derivative financial instruments.
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