The Optimal Hedging Information Disclosure on Corporate Hedging
Chen Hen · Systems Enging-theory Methodology Application · 2001
Corporate hedging is strategies that corporate adopt to remove all the uncertainty with the earning cash flow by using the financial innovation product and financial derivatives. This paper, based on the agent conflict of the shareholder and manage, studies the corporate hedging, optimal incentive contract and information disclosure. The utility of the shareholder and manager and the optimal incentive contract is analyzed respectively under some condition that the manager provides the shareholder information disclosure, no disclosure, complete disclosure, incomplete disclosure.