scholarly journals Foreign Currency Exposure and Hedging: Evidence from Foreign Acquisitions

2010 ◽  
Author(s):  
Söhnke M. Bartram ◽  
Natasha Burns ◽  
Jean Helwege
Keyword(s):  
Foreign Currency ◽  
Foreign Acquisitions ◽  
Currency Exposure

scholarly journals Foreign Currency Exposure and Hedging: Evidence from Foreign Acquisitions

2013 ◽  
Vol 03 (02) ◽  
pp. 1350010 ◽  
Author(s):  
Söhnke M. Bartram ◽  
Natasha Burns ◽  
Jean Helwege
Keyword(s):  
Exchange Rate ◽  
Foreign Currency ◽  
Securities And Exchange Commission ◽  
Foreign Companies ◽  
Foreign Acquisitions ◽  
Currency Derivatives ◽  
Currency Exposure ◽  
Foreign Operations ◽  
The Exchange Rate ◽  
Using Data

We study the exchange rate exposures of a sample of firms that undertake large acquisitions of foreign companies. Using data from Securities and Exchange Commission (SEC) filings on their foreign operations and derivatives usage, we examine how the exposures change from before to after the acquisition. We find that these deals generally lead to reduced currency exposure, which reflects the fact that most of the firms already have business in the target's country and the mergers serve as operational hedges. In contrast, we do not find a statistically significant effect for hedging with currency derivatives despite the fact that many of the firms in the sample use such instruments.

An Exposition on Foreign Currency Exposure

2014 ◽  
Author(s):  
Prabakaran Sellamuthu ◽  
J.P. Singh
Keyword(s):  
Foreign Currency ◽  
Currency Exposure

MOTIVES FOR CORPORATE HEDGING: EVIDENCE FROM THE UK

2005 ◽  
Vol 01 (01) ◽  
pp. 0550003 ◽  
Author(s):  
EPHRAIM CLARK ◽  
AMRIT JUDGE
Keyword(s):  
Risk Management ◽  
Financial Distress ◽  
Economies Of Scale ◽  
Foreign Currency ◽  
Annual Reports ◽  
Data Sets ◽  
Growth Options ◽  
Corporate Hedging ◽  
Currency Exposure ◽  
The Uk

In this paper, we use survey data and data from annual reports to identify the determinants of hedging activity of United Kingdom (UK) firms in the context of an overall program of risk management. Comparing the two sets of data makes it possible to identify misclassified firms, that is, firms whose hedging claims are not consistent across the two data sets. Our results on the consistent data show that the likelihood of hedging is related to growth options, foreign currency exposure, liquidity and economies of scale in hedging costs. Contrary to many previous US studies, we also find strong evidence linking the decision to hedge and the expected costs of financial distress. Results for the misclassified firms suggest that they are actually hedgers that hedge less extensively than the correctly classified (CC) hedgers.

Why hedge currency exposure with foreign currency debt?

2013 ◽  
Vol 26 (2) ◽  
pp. 258-289 ◽  
Author(s):  
Milagros Vivel‐Búa ◽  
Luis Otero‐González ◽  
Sara Fernández‐López ◽  
Pablo Durán‐Santomil
Keyword(s):  
Foreign Currency ◽  
Currency Exposure ◽  
Foreign Currency Debt
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