EconPapers    
Economics at your fingertips  
 

The price gold shareholders place on market risks

Les Coleman ()

Applied Financial Economics, 2010, vol. 20, issue 10, 795-802

Abstract: This study introduces two gold-mining companies with almost identical assets but opposite hedge policies and demonstrates that shareholders do not place any permanent value on hedging. The unhedged gold miner has a market value premium above its hedged counterpart that changes in response to gold's price; but the alternative risk strategies do not bring any difference in returns to shareholders and financial measures of firm risk. These conclusions challenge previous analyses and the standard finance assumption that securities with higher expected risks bring higher returns.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09603101003636196 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:20:y:2010:i:10:p:795-802

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/09603101003636196

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:apfiec:v:20:y:2010:i:10:p:795-802