management (reducing currency-specific FX exposure) from speculation (increasing or holding currency-specific FX exposure …

derivatives transactions in Mexico along with customs data to construct a unique data set on operational exchange rate exposure … and financial hedging. We find that contrary to a rational and frictionless benchmark, performance in previous derivatives …Even though financial risk management has the ability to generate value, the use of financial derivatives among …

commodity price exposure of a large sample of nonfinancial firms. The results indicate that corporations exhibit net exposures … affected by commodity price movements, and with corporate hedging of commodity price risk …

empirical support for rationales of hedging with derivatives at the firm level. While various empirical challenges and … degree of operating hedging. Moreover, corporations do not just use financial derivatives, but rely heavily on pass …According to financial theory, corporate hedging can increase shareholder value in the presence of capital market …

use of derivatives in general and options in particular by nonfinancial corporations across different underlyings and …

to a situation known as “the exposure puzzle”. This paper provides a survey of the existing research on the exposure … phenomenon for nonfinancial firms. We suggest that the exposure puzzle may not be a problem of empirical methodology or sample … selection as previous research has suggested, but is simply the result of the endogeneity of operative and financial hedging at …

interest rate exposure of nonfinancial firms. Consequently, this paper investigates the impact of interest rate risk on a large … regard to movements in various interest rate variables. The interest rate exposure is empirically determined by measures of …

be explained by the fact that only the linear exposure component has been estimated or that exchange rate indices were … percentage of foreign sales, measures of firm liquidity and industry sectors are significant determinants of the exposure. …

due to foreign currency-based activities and international competition, corporate hedging mitigates this gross exposure … such as total cash flow can be explained by hedging at the firm level. Thus, the residual net exposure is economically and …This paper presents results from an in-depth analysis of the foreign exchange rate exposure of a large nonfinancial …