We examine the problem of hedging a foreign exchange exposure using a futures contract on the value of the local currency in terms of the foreign currency. This process will be referred to as indirect currency futures hedging. A general formula for the minimum-variance indirect currency futures hedge ratio is derived and special cases of this formula are obtained for commonly made assumptions about the joint spot and futures price process. The performance of the indirect hedge is found not to depend...

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The objective of this study is to explore the factors influencing the decision of the students on two-year College education to accept the offer of accounting as a major. The study examines the influence of variables such as career opportunities, family members and friends, and earnings potential on students’ decision to accept the offer of accounting major. A survey was conducted among all students majoring in accounting at the Public Authority for Applied Education and Training College. The findings...

This study examines the long-run relationships and short-run dynamic interactions between stock returns and its determinants comprising of GDP per capita, inflation and happiness, over the period 1973 to 2012. The study applies the dynamic heterogenous panel estimation techniques of Mean Group (MG), Pooled Mean Group (PMG) and Dynamic Fixed Effects (DFE) to analyse a set of macro panel data on selected OECD countries to establish the possible causal relations between these variables. The theoretical...

This study focuses and compares the efficacy of two approaches of the transaction exposure (value at risk “VaR” and modified value-at-risk “MVaR”) for multinational enterprises (MNEs) conducting business in one and/or up to seven specific emerging markets for the duration of 2011-2014. The significance of this study is that it provides the optimal currency portfolio of emerging market currencies. These two approaches (VaR and MVaR) are compared with the ex-post results. The maximum 1-day...

We empirically examine the factors affecting Japanese bond spreads. We compare banks’ investing activities during the Japanese financial crisis of the 1990s with the global financial crisis of 2008. Our results show that during the 1990s, focusing on liquidity risk, bond spreads were affected by market liquidity and funding liquidity and during the 2008 crisis only by market liquidity. However, when the bond-issuing market was stopped temporarily, banks faced heavy loan funding needs. Banks transferred...

Previous studies dealing with gender and retirement savings found that one of the main causes for the differences between genders was largely due to occupation differences between men and women. Surveying 304 men and women working in a non-profit institution in the United States, we investigate whether gender differences exist in retirement savings under identical retirement benefit plans. We find that the retirement contributions between men and women do not show any statistically significant difference....

Managers may seek autonomy because they disagree with investors on what course of action will maximize a project’s returns. Alternatively, managers may want autonomy to allow them to extract private benefits from the project. I examine managerial motives for seeking autonomy using rich ex post project-byproject data for a comprehensive sample of projects in the movie industry. My findings are consistent with a competitive equilibrium in which managerial autonomy does not distort investment efficiency....

We examine the effectiveness of trading strategies that use exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that offer various types of exposure to gold returns. The strategies are based on the results of recent research that indicate gold is a safe haven when financial market risk increases. We make adjustments to a stock/bond/gold portfolio based upon signals provided by the VIX and examine the effectiveness and relative effectiveness of the gold-related vehicles to enhance return....

The purpose of this study is to analyze if female presence in boards of directors affects firms’ corporate reputation, as a form of CSR. The under-representation of women on boardrooms is a heavy discussed topic, not only in Italy. Based on a critical mass theory and with 149 observations taken from a sample of Italian most reputable companies, from 2012 to 2014, we find that a higher percentage of female members in boardrooms tends to positively affect the level of corporate reputation (considered...