Thai Hedging Practices Post-Asian Financial Crisis

Terry Boulter () and Vanlapa Wongchan ()
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Terry Boulter: Deakin Graduate School of Business, Deakin University, Australia
Vanlapa Wongchan: Department of Finance and Banking, Payap University, Chiang Mai 50000, Thailand

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2013, vol. 16, issue 01, 1-21

Abstract: This paper provides survey evidence captured from a sample of 113 respondents to a 2008 questionnaire sent to 344 companies in Thailand. The study examines Thai hedging practices following the Asian Financial Crisis of 1997. Thai companies, like their international counterparts, rely predominantly on matching and forward contracts to hedge transaction exposure. Thai companies, however, appear to be less rigorous when it comes to internal control and supervision of derivative activity. It is recommended that Thai companies improve their risk management practices by putting into place a documented hedging policy, which includes a requirement that senior staff be actively engaged in the risk management activities of the firm.

Keywords: Foreign exchange; multinational firms; international business; financial risk and risk management; F31; F23; G32 (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0219091513500033

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