Taking a View: Corporate Speculation, Governance and Compensation by Christopher Geczy, Bernadette Minton, Catherine Schrand

SSRN-Taking a View: Corporate Speculation, Governance and CompensationYou know the standard class spiel:"... identify your core business exposure, then find ways to hedge it by taking a derivatives position that moves in the opposite direction. In this way derivatives are not bets on market movements, but as an insurance policy against things outside the firm's control (i.e. macro risk factors."