Narrow search
Showing 1 - 10 of 93
Cover Image
Exchange Rate Exposure
Dominguez, Kathryn M.E. - 2001
In this paper we examine the relationship between exchange rate movements and firm value. We estimate the exchange rate exposure of publicly listed firms in a sample of eight (non-US) industrialized and emerging markets, and find that a significant percentage of these firms are indeed exposed....
Persistent link: https://www.econbiz.de/10012470265
Cover Image
The Effects of Industry Structure on Economic Exposure
Marston, Richard C. - 1996
in foreign currency. So the firm's hedging strategy is simple: sell foreign currency futures equal to the value of its … and its marginal cost in order to assess its exposure to exchange rates. So its hedging strategy also requires detailed …
Persistent link: https://www.econbiz.de/10012473341
Cover Image
Equilibrium Exchange Rate Hedging
Black, Fischer - 1989
In a one-period model where each investor consumes a single good, and where borrowing and lending are private and real, there is a universal constant that tells how much each investor hedges his foreign investments. The constant depends only on average risk tolerance across investors. The same...
Persistent link: https://www.econbiz.de/10012476106
Cover Image
Currency Hedging : Managing Cash Flow Exposure
Alfaro, Laura; Calani, Mauricio; Varela, Liliana - National Bureau of Economic Research - 2021
relatively understudied. We study firms' currency risk exposure and their hedging choices by employing a unique dataset covering …, international trade, trade credits and foreign currency debt. We uncover four novel facts: (i) natural hedging of currency risk is … limited, (ii) financial hedging is more likely to be used by larger firms and for larger amounts, (iii) firms in international …
Persistent link: https://www.econbiz.de/10012585394
Cover Image
Corporate Debt Structure with Home and International Currency Bias
Maggiori, Matteo; Neiman, Brent; Schreger, Jesse - National Bureau of Economic Research - 2023
We explore the consequences of global capital market segmentation by currency for the optimal currency composition of borrowing by firms. Global bond portfolios are driven by the currency of denomination of assets as investors prefer to lend in their home currency or the international currency,...
Persistent link: https://www.econbiz.de/10014437022
Cover Image
Vehicle Currency Use in International Trade
Goldberg, Linda S. - 2005
Although currency invoicing in international trade transactions is central to the transmission of monetary policy, the forces motivating the choice of currency have long been debated. We introduce a model wherein agents involved in international trade can invoice in the exporter's currency, the...
Persistent link: https://www.econbiz.de/10012467558
Cover Image
The Cross-Section of Currency Risk Premia and US Consumption Growth Risk
Lustig, Hanno - 2005
Aggregate consumption growth risk explains why low interest rate currencies do not appreciate as much as the interest rate differential and why high interest rate currencies do not depreciate as much as the interest rate differential. We sort foreign T-bills into portfolios based on the nominal...
Persistent link: https://www.econbiz.de/10012467581
Cover Image
Currency Manipulation
Hassan, Tarek A. - 2016
We propose a novel, risk-based transmission mechanism for the effects of currency manipulation: policies that systematically induce a country's currency to appreciate in bad times lower its risk premium in international markets and, as a result, lower the country's risk-free interest rate and...
Persistent link: https://www.econbiz.de/10012455890
Cover Image
Exchange Rate Exposure and Risk Management : The case of Japanese Exporting Firms
Ito, Takatoshi - 2015
risk management measures--financial and operational hedging, the choice of invoice currency and the price revision strategy … by both financial and operational hedging. Third, yen invoicing reduces foreign exchange exposure. These findings …
Persistent link: https://www.econbiz.de/10012457628
Cover Image
The Demand of Liquid Assets with Uncertain Lumpy Expenditures
Alvarez, Fernando - 2012
We consider an inventory model for a liquid asset where the per-period net expenditures have two components: one that is frequent and small and another that is infrequent and large. We give a theoretical characterization of the optimal management of liquid asset as well as of the implied...
Persistent link: https://www.econbiz.de/10012460508