According to the Wharton/CIBC Survey of 1998 on hedging,only when a firm is sufficiently large to overcome the fixed costs of hedging does the firm

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The Wharton/CIBC Survey of 1998 on hedging suggests that only when a firm is large enough to overcome the fixed costs of hedging should it establish a hedging policy. This implies that the company should have a formal framework for hedging its risks in financial markets. Creating an international division or tax shelters may not be a priority for firms until they have established a successful hedging policy. Holding only the cash manager responsible for hedging is not advisable as it is a complex task that requires expertise and collaboration from various areas of the firm.

According to the Wharton/CIBC Survey of 1998 on Hedging,only When