Gamba, Andrea and Triantis , Alexander J. (2014) Corporate risk management : integrating liquidity, hedging, and operating policies. Management Science, Volume 60 (Number 1). pp. 246-264. doi:10.1287/mnsc.2013.1752 ISSN 0025-1909.

Research output not available from this repository.

Request-a-Copy directly from author or use local Library Get it For Me service.

Request Changes to record.

Abstract

We analyze the value created by a dynamic integrated risk management strategy involving liquidity management, derivatives hedging and operating flexibility, in the presence of several frictions. We show that liquidity serves a critical and distinct role in risk management, justifying high levels of cash. We find that the marginal value associated with derivatives hedging is likely to be low, though we explain why some empirical studies find a higher value. We explore the complex interactions between operating flexibility and financial risk management, finding that substitution effects are non-monotonic, and are affected by operating leverage, the nature of operating flexibility, and the effectiveness of the hedging instrument.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Management Science
Publisher:	Institute for Operations Research and the Management Sciences (I N F O R M S)
ISSN:	0025-1909
Official Date:	January 2014
Dates:	Date Event January 2014 Published 3 September 2013 Available 19 March 2013 Accepted 11 June 2012 Submitted
Volume:	Volume 60
Number:	Number 1
Page Range:	pp. 246-264
DOI:	10.1287/mnsc.2013.1752
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

Request changes or add full text files to a record

Repository staff actions (login required)

View Item