How do firms hedge in financial distress?
利用油气生产商的手工收集数据，研究了企业在财务困境中如何通过对冲油价来管理风险，发现它们采用一种三向领口策略，该策略通过买卖不同执行价的期权来平衡流动性和增长激励。
Abstract We examine how firms hedge in financial distress. Using hand‐collected data from oil and gas producers, we find that these firms hedge oil prices during periods of financial distress. Derivative portfolios in these firms are characterized by short put options. These positions are part of a composite three‐way (3W) collar strategy that combines buying put options and selling put and call options with differing strike prices. Because liquidity demand varies with the degree of financial distress, the 3W collar strategy preserves incentives for future growth.