Hedging and Liquidity

By A. Mello, J. Parsons. 2000

273 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/4c3a1e36730b814339411a743b36fd7e4580c011

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Citations in the corpus

Does Fuel Hedging Make Economic Sense? The Case of the US Airline Industry (2002, unknown): “5 Mello and Parsons (2000) make a similar argument as to the benefit of hedging.”
Liquidity and Capital Structure (2011, unknown): “…hedge of ρ would not be modelled by simply taking η = 0, but rather by subtracting the martingale component of the process ρ. 21Recent contributions that make the assumption of Geometric Brownian Motion include Leland (1994) and (1998), Mello and Parsons (2000) Rochet and Villeneuve (2004).”
Dynamic Risk Management (2014, background): “Morrell and Swan 5 the financing risk management trade-off, do not use the net worth variable suggested by our theory, and do not exploit within-airline variation separately.”
Collateral and Capital Structure (2009, background): “Mello and Parsons (2000) also argue that financial constraints can restrict hedging.”
Board of Directors' Size and Performance in the Banking Industry (2009, background): “Theoretically, a high uncertainty of cash flows negatively affects shareholders’ value because it increases the expected costs of distress and under-investment (Smith and Stulz, 1985; Demarzo and Duffie, 1995; Mello and Persons, 2000; Haushalter et al., 2002).”
Investment, Uncertainty, and Liquidity (2003, unknown): “, Milne and Whalley (2000) and Mauer and Triantis (1994).”
Derivative usage and firm value: The influence of agency costs and monitoring problems (2010, background): “…their use effectively addresses market imperfections such as bankruptcy costs, financing constraints, information asymmetries, and taxes (e.g., Mello and Parsons, 2000; Froot et al., 1993; Stulz, 1996; DeMarzo and Duffie, 1991; Bessembinder, 1991; Stulz, 1990; Smith and Stulz, 1985; Myers,…”
Optimal Bank Capital with Costly Recapitalization (2006, unknown): “Our model builds on the basic continuous time model of a capital constrained firm presented in Milne and Robertson (1996). Hojgaard and Taksar (1999) have extended the basic model into an insurance company setting by assuming that risk reduction at a proportional cost is available, which is interpre”
Initial Public Offerings: An Analysis of Theory and Practice (2004, unknown): “Closely related to the cost of capital line of reasoning, Myers and Majluf (1984) and Myers (1984) argue for a pecking order of financing. They assert that firms will rely on financing in the order of cost – beginning with internal equity, proceeding to debt financing, and then finally to external e”
Initial Public Offerings: An Analysis of Theory and Practice (2006, unknown): “Second, Zingales (1995) and Mello and Parsons (1998) argue that an IPO allows”
How Firms Should Hedge (2001, unknown): “Likewise, what hedge they do undertake will more likely be composed of long positions in options to prevent large payouts that could be possible with linear instruments (see Mello and Parsons [26]).”
Does Hedging Affect Firm Value? Evidence from the US Airline Industry (2006, unknown): “Bessembinder (1991) and Mello and Parsons (2000) make a similar argument as to the benefit of hedging.”
Corporate Financial and Investment Policies when Future Financing is Not Frictionless (2011, unknown): “28 Mello and Parsons (2000) propose an alternative model of the relation between …nancial constraints and optimal”
Financial Constraints, Competition, and Hedging in Industry Equilibrium (2007, unknown): “See Stulz (1984), Smith and Stulz (1985), Stulz (1990), Froot, Scharfstein and Stein (1993), DeMarzo and Duffie (1995), and Mello and Parsons (2000) for further discussions.”