Firms, do you know your currency risk exposure? Survey results

Loderer, Claudio; Pichler, Karl (2000). Firms, do you know your currency risk exposure? Survey results. Journal of Empirical Finance, 7, pp. 317-344. Elsevier

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This paper surveys the currency risk management practices of Swiss industrial corporations. We find tha industrials do not quantify their currency risk exposure and investigate possible reasons. One possibility is that firms do not think they need to know because they use on-balance-sheet instruments to protect themselves before and after currency rates reach troublesome levels. This is puzzling because a rough estimate of at least cash flow exposure is not a prohibitive task and could be helpful. It is also puzzling that firms use currency derivatives to hedge/insure individual short-term transactions, without apparently trying to estimate aggregate transaction exposure.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio and Pichler, Karl

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0927-5398

Publisher:

Elsevier

Language:

English

Submitter:

Karin Dolder

Date Deposited:

09 Dec 2013 15:54

Last Modified:

11 Jan 2015 01:20

BORIS DOI:

10.7892/boris.39514

URI:

https://boris.unibe.ch/id/eprint/39514

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