Work

Managerial Stock Options and the Hedging Premium

Year: 2007

Type: article

Abstract: Previous studies have found mixed evidence on whether hedging increases firm value. Some studies have shown that managerial incentives may influence firm hedging. In this paper we provide evidence that when hedging is based upon incentives from managers' options, firm value decreases.

Source: European Financial Management

DOI: 10.1111/j.1468-036x.2007.00380.x

Authors: Niclas Hagelin, Martin Holmén, John D. Knopf, Bengt Pramborg

Institutions: Uppsala University, University of Connecticut, Stockholm University

Language: English

Topic: Risk Management in Financial Firms

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3125501637

FWCI: 5.772

Cites: 48

Cited by: 35

Related to: 10