search query: @author Chowdhry, B. / total: 5
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| Author: | Chowdhry, B. Howe, J. |
| Title: | Corporate risk management for multinational corporations: financial and operational hedging policies |
| Journal: | European Finance Review
1998 : VOL. 2:2, p. 229-246 |
| Index terms: | FINANCE RISK MANAGEMENT HEDGING |
| Language: | eng |
| Abstract: | Under what conditions will a multinational corporation alter its operations to manage its risk exposure? The authors show that multinational firms will engage in operational hedging only when both exchange rate uncertainty and demand uncertainty are present. Operational hedging is less important for managing short-term exposures, since demand uncertainty is lower in the short term. Operational hedging is also less important for commodity-based firms, which face price but not quantity uncertainty. |
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