distress costs and the foreign currency hedging decision and more significantly the foreign currency only hedging decision … the fact that several U.S. studies include in their non-hedging sample other hedging firms, such as firms using non …-derivative methods for currency hedging and interest rate only hedgers, which might bias the results against the a priori expectations …

firm's exchange rate exposure coefficients on its size, foreign activity variables and financial hedging proxies over the … operations and hedging variables affect their sensitivity to exchange rate exposure.Practical implications – This study provides …