haku: @indexterm Hedging / yhteensä: 349
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| Tekijä: | Clark, E. Judge, A. |
| Otsikko: | The determinants of foreign currency hedging: Does foreign currency debt induce a bias? |
| Lehti: | European Financial Management
2008 : JUN, VOL. 14:3, p. 445-469 |
| Asiasana: | financial crises credit debt derivative securities hedging currency speculation |
| Kieli: | eng |
| Tiivistelmä: | Based on U.K. data, this paper presents strong empirical evidence explaining the mixed results in previous studies as to the effect of financial distress (here as: fin-dtrs.) on the demand for corporate hedging. Building on an identified strong link btw. foreign currency (FC) debt use and leverage (as: lvrg.), it is shown that using lvrg. variables (as: vars.) as proxies for fin-dtrs. and the failure to distinguish btw. FC debt users and non-users causes misleading inference. In more detail, it is found that lvrg. vars. are significantly related to the FC hedging decision for firms using FC debt either in isolation or in combination with FC derivatives (as: drvs.) but not for firms only using FC drvs. etc. |
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