Explain how hedging can i reduce firms potential financial, Financial Management

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Explain how hedging can i reduce firms potential financial

Explain how hedging can i) reduce firm’s potential financial distress, and ii) alleviate firm’s underinvestment problem.

Secondly, explain how firm’s hedging activities can be driven by agency problem. Please cite the empirical papers in support of these theories.

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Financial Management: Explain how hedging can i reduce firms potential financial

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Financial Management: Explain how hedging can i reduce firms potential financial

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