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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment decisions. This work is relevant in that theoretical predictions are not necessarily identical to those in the case where only two decisions are being made. We argue that the way in which hedging affects the firms' financing and investing decisions differs for firms with different growth opportunities. We empirically find that high-growth firms increase their investment, but not their leverage, by hedging. However, we also find that firms with few investment opportunities use derivatives to increase their leverage. Terms of use: Documents in EconStor mayJEL classification: G31, G32

Using the introduction of Measures for the Disclosure of Environment Information (MDEI) in China, we investigate the relationship between environmental disclosure and firms' financial constraints. We find that cash-cash flow sensitivity decreases by 13.33% after the implementation of MDEI and that an increase of one point in the disclosure quality score results in an estimated reduction of 0.86% in cash-cash flow sensitivity. We further find that the negative association between disclosure quality and cash-cash flow sensitivity is more pronounced for high-polluting firms, as well as for firms with effective internal control. Our study highlights the importance of a government environmental policy in emerging markets.

For over a decade, the SEC has required corporations to disclose in their 10-K filings the nature and extent of their risk exposures using one or more of the following three methods: (1) sensitivity analysis; (2) the so-called "tabular" format; and (3) value-at-risk (VaR). After discussing the significant differences in the type and level of information revealed by each method, this article presents the findings of a study that examines how corporate choices of disclosure method vary with firm-specific and industry characteristics. 2007 Morgan Stanley.