| Property | Value |
| Name | Tan, M. (2001) Managing aviation fuel risk: Emerging market’s airline companies perspective on the |
| Description | Tan, M. (2001) Managing aviation fuel risk: Emerging market’s airline companies perspective on the International arena, Centre for International Business Studies, South Bank University London, Paper number 25-02, London http://www1.lsbu.ac.uk/cibs/pdf/25-02.pdf. Accessed March 22, 2010 An empirical analysis reveals two main directions for hedging. The first is to cross hedge jet fuel using other underlying futures contracts, which are highly correlated. The second method entails cross hedging emerging market currencies using major currencies futures contracts. In the oil market, empirical results imply that OLS estimators are superior to IV estimators in all cases. Cross hedging using the IV estimators would add more risk when compared to an unhedged position. The results reveal that jet fuel is best cross hedged with crude oil futures. As in the currency markets, only China, Singapore and Taiwan are able to effectively cross hedge. The performances of the estimators are mixed. Generally, the models using IV estimators have to be revised in most cases. Only in the case of Singapore and Taiwan were the findings consistent with results from other studies. However, in the case of China, OLS estimators outperform. |
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| Filetype | pdf (Mime Type: link) |
| Created On: | 12/12/2007 17:47 |
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