Purpose – The purpose of this paper is to investigate the exchange rate exposure of UK non-financial companies from January 1981 to December 2001.Design/methodology/approach – The study employs different exchange rate measures andadopts an equally weighted exchange rate. The analyses are...

For 366 large non-financial U.K. firms, this paper reports the factors that are important in determining their decision to hedge foreign currency exposure. The results provide strong evidence of a relationship between expected financial distress costs and the foreign currency hedging decision...

It is widely believed that exchange rate exposure can affect the value of the multinationals. More specifically, an increase in home currency value decreases multinationals value by decreasing foreign currency dominated cash flows and assets, and vice-versa. However, empirical results found on...