Abstract
The tremendous increase in international business over the past decade has required a substantial number of corporations to deal with the risks arising from fluctuations in currency values. To do this, corporate treasurers have developed a number of decision rules to guide them in hedging against these risks. Based on the author9s experience with many financial officers involved in conducting these activities, several major alternative decision rules have been identified. Using decision theory as a reference point, this article discusses these practices in terms of their benefits and costs to the firm. A description of how many of the practical problems can be handled with decision theory and some suggested changes in corporate control procedures in this area are provided.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
