- Words: 2803
- Length: 7 Pages
- Topic: Economics
- Paper #: 41595878
DeMarzo and Duffie, (1995), also argue that the presence of hedging may be utilized by shareholders as a way of interpreting the quality of management, with hedging generally deemed to be a beneficial strategy. The perceived lower risk profile may also aid in other areas, such as increasing the ease with which capital raising may take place.
It is also speculated that large organizations may be able to benefit from