Abstract: From the perspective of behavioral finance,under the assumption that corporate managers exhibit both time-inconsistent preferences and ambiguity aversion,this paper introduces the minimum variance hedge ratio and constructs a model of corporate risk hedging and asset pricing under irrational factors.Furthermore,we examine the impact of risk hedging strategies and managerial irrationality on corporate asset pricing.The results show that:(1) Under the same level of ambiguity aversion,a smaller degree of time-inconsistency significantly enhances firm value through risk hedging strategies.Firms that adopt risk hedging strategies exhibit a weaker incentive to increase leverage compared with those which do not.The difference in bankruptcy thresholds between firms adopting and not adopting risk hedging strategies is substantially influenced by the degree of time-inconsistency.(2) Under the same degree of time-inconsistency,risk hedging reduces firm value fluctuations caused by ambiguity aversion.When the level of ambiguity aversion is low,the bankruptcy threshold for those which do not adopt a risk hedging strategy fluctuates more compared with those which do adopt such  strategy.

Key words: time-inconsistent preference, ambiguity aversion, risk hedging strategyt, minimum variance hedging ratio