Hedging, speculation, and shareholder value☆

Speculation and Hedging in Segmented Markets

We analyze a model in which traders have different trading opportunities and learn information from prices. The difference in trading opportunities implies that different traders may have different trading motives when trading in the same market—some trade for speculation and others for hedging—and thus they may respond to the same information in opposite directions. This implies that adding mo...

Negotiated Shareholder Value :

Negotiated Shareholder Value: The German Version of an Anglo-American Practice

Maximising Shareholder Value

Hedging , speculation , and investment in balance - sheet triggered currency crises

This paper explores the linkage between corporate risk management strategies, investment, and economic stability in an open economy with a flexible exchange rate regime. Firms use currency futures contracts to manage their exchange rate exposure – caused by balance sheet effects as in Krugman (2000) – and therefore their investments’ sensitivity to currency risk. We find that, depending on whet...

Modeling Value Speculation

Several studies of speculative execution based on values have reported promising performance potential. However, virtually all microarchitectures in these studies were described in an ambiguous manner, mainly due to the lack of formalization that defines the effects of value–speculation on a microarchitecture. In particular, the manifestations of value–speculation on the latency of microarchite...