Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
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LITERATURE REVIEW 
The empirical research on risk management has generally proceeded in two broad directions. One aspect of 
risk management focuses on characteristics that determine a firm’s decision to hedge and level of its hedging, and 
whether this behavior is consistent with theory. The other aspect of risk management examines the incentives to 
hedge, the effects of derivatives on exposures, and the choice of debt structure. Empirical research on exposure has 
generally been focused more on foreign exchange risk while studies on interest exposure have been limited to 
financial institutions such as banks.