Acceso usuarios
Les Coleman
This study introduces two gold-mining companies with almost identical assets but opposite hedge policies and demonstrates that shareholders do not place any permanent value on hedging. The unhedged gold miner has a market value premium above its hedged counterpart that changes in response to gold's price; but the alternative risk strategies do not bring any difference in returns to shareholders and financial measures of firm risk. These conclusions challenge previous analyses and the standard finance assumption that securities with higher expected risks bring higher returns.
