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Three Essays On Ceo Risk Preferences, And Ability, Corporate Hedging Decisions, And Investor Sentiment, Sonik Mandal
Three Essays On Ceo Risk Preferences, And Ability, Corporate Hedging Decisions, And Investor Sentiment, Sonik Mandal
Finance Theses & Dissertations
The derivative hedging research has looked at why firms and how firms hedge and if it increases value for their shareholders. In this dissertation we investigate the relation between CEO risk preferences and ability and whether if affects their hedging decisions and firm value.
In our first essay, we challenge the theory and previous empirical evidence that showed CEO risk preferences affects hedging. Using a sample of Fortune 500 firms and 5 years of panel data, and using inside debt (i.e., CEO pension and deferred compensation) and the CEO Vega and CEO Delta, as proxies of CEO risk preferences, we …