Firm Risk Management Policies: Financial Hedging and Corporate Diversification

• Main Authors: WANG, Heli C., LIM, Seongyeon
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2001
• Subjects: risk management; finance mathematical models; hedging; diversification; risk exposure; Finance and Financial Management; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3445; https://doi.org/10.5465/APBPP.2001.6132940
• Institution: Singapore Management University

Under what conditions will a firm engage in related or unrelated diversification to manage its risk exposures? Under what conditions will a firm use financial hedging markets to manage its risk exposures? Although it first appears that financial hedging and firm diversification may be substitutes in...