Foreign exchange exposure and hedging strategies of Italian listed industrial compagnie

Alfonso Del Giudice

Banca Impresa Società, 2014, issue 3, 409-422

Abstract: The paper analyzes foreign exchange risk hedging strategies using a sample of Italian industrial listed companies. Collecting data from both annual reports and financial data providers, we compare operating and financial hedging strategies over the period 2007-2012. The number and the concentration of foreign subsidiaries are used as a proxy for operational hedging, while currency derivatives are used as a proxy for financial hedging. After controlling for the sign and the magnitude of foreign exchange risk exposure, we find that financial strategies mitigate exchangerisk.

Keywords: Foreign exchange exposure; operational hedging; foreign currency derivatives; multinational firms. (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:mul:jqmthn:doi:10.1435/79131:y:2014:i:3:p:409-422

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