search query: @indexterm speculation / total: 43
reference: 6 / 43
| Author: | Adam, T.R. Fernando, C.S. |
| Title: | Hedging, speculation, and shareholder value |
| Journal: | Journal of industrial ecology
2006 : AUG, VOL. 81:2, p. 283-309 |
| Index terms: | gold mining industry hedging risk management risk premium shareholder value speculation |
| Language: | eng |
| Abstract: | This article documents that gold mining companies have consistently realized economically significant cash flow gains from their derivatives transactions. It is cocluded that these cash flows have increased shareholder value since there is no evidence of an offsetting adjustment in companies' systematic risk. This result contradicts a central assumption in the risk management literature that derivatives transactions have zero net present value, and highlights an important motive for companies to use derivatives that the literature has hitherto ignored. |
SCIMA