... mostly for speculation rather than hedging. Foreign exchange risk is mostly concerned for the purpose of risk hedging, and forward and/or futures are preferred to other derivatives such as option or swap. We also find that the usage of derivatives has a positive effect on the firm value of Korean...

...Taek Ho Kwon; Rae Soo Park; Uk Chang In this paper we analyze the incentives of derivatives usage and its effect on the risk management and value of firms in Korea. We find that Korean non-financial firms use derivatives not only by the economic incentives to hedge risks but also by the irrational...

...Jun Young Park; Chongseok Hyun The trade-off between cost and risk of discretely rebalanced ELS hedges is analyzed under the proportional transaction costs. The analysis shows that the transaction costs have a considerable impact on the hedging performance. The trade-off, or mean-variance graphs...