 Foreign Exchange Risk Hedging Policy: Evidence from FranceGhassen Nouajaa () and
Jean-Laurent Viviani ()
A chapter in Essays on Financial Analytics, 2023, pp 3-26 from Springer Abstract: Abstract This paper examines foreign exchange risk hedging determinants for a sample of 82 French non-financial firms. Starting from the observation that firms, often, use both currency derivatives and foreign debt, we find evidence that foreign debt can be considered as hedging tool in addition to currency derivatives. Our results show that currency derivatives’ hedging depends from firm size, financial distress risk, liquidity level, foreign sales and future growth opportunities. Foreign debt level depends from firm size, debt level, foreign sales and its future growth opportunities. We demonstrate, further, that foreign debt and currency derivatives are quite different hedging tools. Our results show that the level of operational hedging with foreign debt seems to be loosely correlated with that of currency derivatives. Keywords: Foreign exchange risk; Hedging; Currency derivatives; Foreign debt (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-29050-3_1 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-29050-3_1 Access Statistics for this chapter More chapters in Lecture Notes in Operations Research from Springer |
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