Tekijä: | Allayannis, G. Weston, J.P. |
Otsikko: | The use of foreign currency derivatives and firm market value |
Lehti: | Review of Financial Studies
2001 : SPRING, VOL. 14:1, p. 243-276 |
Asiasana: | COMPANY VALUE DERIVATIVE SECURITIES FOREIGN EXCHANGE USA |
Kieli: | eng |
Tiivistelmä: | This article examines the use of foreign currency derivatives (FCDs) in a sample of 720 large U.S. nonfinancial firms between 1990 and 1995 and its potential impact on firm value. Using Tobin's Q as a proxy for firm value, the authors find a positive relation between firm value and the use of FCDs. The hedging premium is statistically and economically significant for firms with exposure to exchange rates and is on average 4,87% of firm value. |
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