liquidate the futures position. We show that preferences and expectations become important for optimumexport and hedging …

hedging opportunity is introduced by a forward market where the foreign currency can be traded on. We investigate two settings …: First we assume that hedging and output decisions are taken simultaneously. We show that hedging is just done for risk … managing reasons as it is not possible to use hedging strategically. In this setting the well-known separation result of the …

conditions under which export production is stimulated when the hedging device becomes more effective. In any case the exporting … firm benefits from imperfectly hedging exchange rate risk. …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal …

uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable …

forwards at an actuarially fair price, thus rendering both the full-hedge theorem and the separation theorem of the … agents will buy forward cover only for nvestment reasons. The amount of forwards purchased is around 20% of equilibrium …

(FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool … multinational firm enters currency futures markets. Besides currency risk, multinationals cross-hedge country risk via the …/Estrin 2004) together with the fact that almost all (92 %) of the world's top 500 companies enter derivatives markets for hedging …