effectiveness of such hedges depends on the hedge horizon, they might affect a firm's usage of foreign exchange derivatives and lead …

In this paper I investigate whether the use of foreign exchange (FX) derivatives adds value to German firms, which … information on the use of FX derivatives by 391 firms between 2004 and 2013. After controlling for a set of fundamental firm … characteristics I find that on average the use of FX derivatives does significantly add to their value. This relationship seems to be …

effectiveness of such hedges depends on the hedge horizon, they might affect a firm's usage of foreign exchange derivatives and lead … ; hedging ; cointegrated VAR model …

hedging. We argue that high levels of internationalization can reduce the need for foreign exchange hedging through … diversification (e.g. sales to several markets) and operational hedging (matching of cash flows and operational flexibility). We …-financial German firms. Foreign exchange hedging activity peaks when half of sales (or long-term assets) is outside Europe. Our paper …

derivatives more often when they export or import, and especially when exchange-rate fluctuations are larger, but to a lesser … extent when having high export and import shares simultaneously. We interpret this finding as evidence of operational hedging … that arises when foreign-denominated revenues and costs match, crowding out financial hedging. Our identification strategy …