A Message from the Editor

• Date: 01 March 2015
• Published date: 01 March 2015
• DOI: http://doi.org/10.1111/jacf.12097

In This Issue: Corporate Risk Management

Risk-Taking and Risk Management by Banks 8René M. Stulz, Ohio State University

Risk Management by Commodity Trading Firms: The Case of Tragura 19 Craig Pirrong, University of Houston

How to Strengthen the Regulation of Bank Capital: Theory, Evidence,

and A Proposal

27 Shekhar Aiyar, International Monetary Fund,

Charles W. Calomiris, Columbia University, and

Tomasz Wieladek, Bank of England

When One Size Doesn’t Fit All: Evolving Directions in the Research and Practice of

Enterprise Risk Management

37 Anette Mikes, HEC Lausanne, and Robert S. Kaplan,

Harvard Business School

Evidence of the Value of Enterprise Risk Management 41 Robert E. Hoyt, University of Georgia, and

Andre P. Liebenberg, University of Mississippi

Here We Go Again…Financial Policies in Volatile Environments:

Lessons For and From Energy Firms

48 Marc Zenner, Evan Junek, and

Ram Chivukula, J.P. Morgan

Corporate Hedging of Price Risks: Minimizing Variance or

Eliminating Lower-Tail Outcomes?

57 Tom Aabo, Aarhus University, Denmark

OTC vs. Exchange Traded Derivatives and Their Impact on

Hedging Effectiveness and Corporate Capital Requirements

63 Ivilina Popova, Texas State University, and

Betty Simkins, Oklahoma State University

Valuing Emerging Market Equities—A Pragmatic Approach

Based on the Empirical Evidence

71 Niso Abuaf, Pace University and Ramirez and Co.

A Practical Guide for Non-Financial Companies When Modeling

Longer-Term Currency and Commodity Exposures

89 Lurion De Mello and Elizabeth Sheedy, Macquarie

University, and Sarah Storck, Technical University Munich

Renewable Energy with Volatile Prices: Why NPV Fails to Tell the Whole Story 101 Ricardo G. Barcelona, King’s College, London and

IESE Business School

Real Options in Foreign Investment: A South American Case Study 110 Michael J. Naylor, Jianguo Chen and Jeffrey Boardman,

Massey University

VOLUME 27 | NUMBER 1 | WINTER 2015

APPLIED CORPORATE FINANCE

Journal of