study uses survey data, which enables us to differentiate between hedging aimed at translation exposure and transaction … increasing with firm size and exposure and that liquidity constraints are important in explaining transaction exposure hedging …. Importantly, we find that the existence of loan covenants explains translation exposure hedging. This suggests that firms hedge …

This paper presents international evidence on the use of financial derivatives for a sample of 7,292 non …-financial firms from 48 countries including the United States. Across all countries, 59.8% of the firms use derivatives in general …, while 43.6% use currency derivatives, 32.5% interest rate derivatives, and only 10.0% commodity price derivatives …