CORPORATE ISSUES OF FOREIGN-CURRENCY EXCHANGE WARRANTS - A CASE-STUDY OF FINANCIAL INNOVATION AND RISK MANAGEMENT
成果类型：
Article
署名作者：
ROGALSKI, RJ; SEWARD, JK
刊物名称：
JOURNAL OF FINANCIAL ECONOMICS
ISSN/ISSBN：
0304-405X
DOI：
10.1016/0304-405X(91)90036-J
发表日期：
1991
页码：
347-366
关键词：
摘要：
We argue that hedging and risk management activities of modern corporations arise as a direct consequence of attempts to create shareholder wealth through financial innovation. We formalize this argument by examining in detail corporate issues of foreign currency exchange warrants. We then focus on one multiple issuer to demonstrate how the foreign exchange risk created by the sale of the warrants can be eliminated. The use of off-balance-sheet risk management techniques to lock in the benefits of selling overpriced securities raises questions about the information content of innovative corporate financing decisions.