Investment irreversibility, policy uncertainty and hedging strategies

该项目旨在调查公司的财务对冲和生产决策如何减少潜在的不稳定监管政策造成的冲击，特别是在投资基本上不可逆转的情况下。不稳定的监管政策会给经济带来冲击，但联合对冲和生产决策比单独使用金融对冲来平滑冲击更有效。预计监管变化的公司会改变他们对政策的反应，这可能会降低这些政策的有效性。该项目对澳大利亚矿业和能源行业的调查应有助于了解企业的套期保值行为，并可能对政策设计产生影响。

This project aims to investigate how firms’ financial hedging and production decisions reduce shocks caused by potentially unstable regulatory policies, particularly when the investments are largely irreversible. Unstable regulatory policies induce shocks to the economy, but a joint hedging and production decision is more effective than using financial hedging alone to smooth shocks. Firms that anticipate regulatory change alter their responses to policies, potentially rendering those policies less effective. This project’s investigation of Australian mining and energy industries should provide understanding of firms’ hedging behaviour and could have implications for the design of policy.