How Companies Can Use Hedging to Create Shareholder Value

• Date: 01 December 2013
• DOI: http://doi.org/10.1111/jacf.12038
• Published date: 01 December 2013
• Author: René Stulz

Journal of Applied Corporate Finance

c/o Wiley-Blackwell

350 Main Street

Malden, MA 02148-5018

VOLUME 25 | NUMBER 4 | FALL 2013

JOURNAL OF APPLIED CORPORATE FINANCE Risk Management VOLUME 25 | NUMBER 4 | FALL 2013

In This Issue: Risk Management

Navigating the Changing Landscape of Finance 8James Gorman, Chairman and CEO, Morgan Stanley

Reforming Banks Without Destroying Their Productivity and Value 14 Charles W. Calomiris, Columbia University

How Companies Can Use Hedging to Create Shareholder Value 21 René Stulz, Ohio State University

Do Trading and Power Operations Mix? 30 John E. Parsons, MIT Sloan School of Management

Aligning Incentives at Systemically Important Financial Institutions:

A Proposal by the Squam Lake Group

37 The Squam Lake Group

Managing Pension Risks: A Corporate Finance Perspective 41 Gabriel Kimyagarov, Citigroup Global Markets, and

Anil Shivdasani, University of North Carolina at Chapel Hill

Synthetic Floating-Rate Debt: An Example of an Asset-Driven Liability Structure 50 James Adams, J.P. Morgan Securities, and Donald J. Smith,

Boston University

Hedge Fund Involvement in Convertible Securities 60 Stephen J. Brown, New York University; Bruce D. Grundy Uni-

versity of Melbourne; Craig M. Lewis, Vanderbilt University;

and Patrick Verwijmeren, Erasmus University Rotterdam

Fine-Tuning a Corporate Hedging Portfolio: The Case of an Airline 74 Mathias Gerner, European Business School and

Ehud I. Ronn, University of Texas at Austin

A Primer on the Economics of Shale Gas Production

Just How Cheap is Shale Gas?

87 Larry W. Lake, University of Texas; John Martin, Baylor

University; J. Douglas Ramsey, EXCO Resources, Inc.; and

Sheridan Titman, University of Texas

Evidence from German Companies of Effects of Corporate

Risk Management on Capital Structure Decisions

97 Julita M. Bock, Otto von Guericke University

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APPLIED CORPORATE FINANCE

Journal of