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Managerial Stock Options and the Hedging Premium |
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| Authors: | Niclas Hagelin Martin Holmn John D Knopf Bengt Pramborg |
| 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. |
| Keywords: | hedging managerial incentives firm value G32 F31 |