Risk Management: Coordinating Corporate Investment and Financing Policies.
Kenneth A. Froot; David S. Scharfstein; Jeremy C. Stein;
Journal: Journal of Finance,volume 48,issue 5 December,pages1,629-58
This paper develops a general framework for analyzing corporate risk management policies. We begin by observing that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging add... View more