Information, unternehmensinterne Kommunikation und Risikopolitik
[Information, intra-firm communication and risk policy]
AbstractBased upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of risk aversion. The elasticity of risk aversion is a decisive indicator; however, it is rarely scrutinized in the literature. In addition, our analysis illustrates the cost saving advantages of the applied (μ,σ)-principal compared to the Bernoulli-principal for information procurement processes. Applying the (μ,σ)-principal facilitates and enhances firm-internal communication information levels.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21731.
Date of creation: 2003
Date of revision:
Exchange rate risk; international trade; hedging; information;
Other versions of this item:
- Broll, Udo & Gilroy, B. Michael & Wahl, Jack E., 2003. "Information, unternehmensinterne Kommunikation und Risikopolitik," Dresden Discussion Paper Series in Economics 06/03, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- F31 - International Economics - - International Finance - - - Foreign Exchange
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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