Berróspide, José M.; Purnanandam, Amiyatosh; Rajan, Uday - 2008
We consider the effect of hedging with foreign currency derivatives on Brazilian firms in the period 1997 through 2004 … higher than non-user firms. Hedging with currency derivatives allows firms to sustain larger capital investments, and also …, Scharfstein, and Stein (1993), at a time when capital in the economy as a whole is scarce. We further show that hedging increases …
