Foreign currency derivative markets are among the largest in the world, yet their role in emerging markets is … 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 …

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 …

This paper is a comparative study of the responses to the 1995 Wharton School survey of derivative usage among US non … derivative usage is most common, followed closely by interest rate derivatives, with commodity derivatives a distant third. In … contrast to the similarities, firms in the two countries differ notably on issues such as the primary goal of hedging, their …

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 …

, but not at long horizons. At horizons of several years, complete hedging not only does not lower return variance, it … apparent causes, and investigates their implications for hedging practice …

incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important …