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Journal articles on the topic 'Rate hedging'

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Published: 4 June 2021
Last updated: 17 February 2022

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1

Finnerty, Joseph E. "HEDGING THE PRIME RATE." Financial Review 20, no. 3 (August 1985): 39. http://dx.doi.org/10.1111/j.1540-6288.1985.tb00217.x.

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2

BLACK, FISCHER. "Equilibrium Exchange Rate Hedging." Journal of Finance 45, no. 3 (July 1990): 899–907. http://dx.doi.org/10.1111/j.1540-6261.1990.tb05111.x.

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3

Broll, Udo, Jack E. Wahl, and Christoph Wessel. "Export, Exchange Rate Risk and Hedging: The Duopoly Case." German Economic Review 12, no. 4 (December 1, 2011): 490–502. http://dx.doi.org/10.1111/j.1468-0475.2011.00531.x.

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Abstract This paper studies a Cournot duopoly in international trade with firms exposed to exchange rate risk. A hedging opportunity is introduced by a forward market on which one firm can trade the foreign currency.We investigate two settings: First, we assume that hedging and output decisions are taken simultaneously. It is shown that hedging is exclusively done for risk-managing reasons as it is not possible to use hedging strategically. Second, the hedging decision is made before the output decisions. We show that hedging is not only used to manage the risk exposure but also as a strategic device.
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4

Ghosh, Asim. "Hedging With Interest Rate Futures." Journal of Fixed Income 3, no. 1 (June 30, 1993): 72–79. http://dx.doi.org/10.3905/jfi.1993.408072.

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5

KAUFFMAN, THOMAS D., and STEPHEN B. DOPPLER. "Hedging a Commodity Power Rate." Natural Resources Forum 10, no. 2 (May 1986): 173–79. http://dx.doi.org/10.1111/j.1477-8947.1986.tb00792.x.

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6

Brealey, R. A., and E. C. Kaplanis. "Discrete exchange rate hedging strategies." Journal of Banking & Finance 19, no. 5 (August 1995): 765–84. http://dx.doi.org/10.1016/0378-4266(95)00089-y.

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7

Bartram, Söhnke M., and Gordon M. Bodnar. "The exchange rate exposure puzzle." Managerial Finance 33, no. 9 (August 7, 2007): 642–66. http://dx.doi.org/10.1108/03074350710776226.

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PurposeBased on basic financial models and reports in the business press, exchange rate movements are generally believed to affect the value of nonfinancial firms. In contrast, the empirical research on nonfinancial firms typically produces fewer significant exposures estimates than researchers expect, independent of the sample studied and the methodology used, giving rise to a situation known as “the exposure puzzle”. To this end, this paper aims to systematically analyze the existing empirical evidence of the exposure phenomenon and to attempt to understand the possible source of the exposure puzzle.Design/methodology/approachThe paper provides a survey of the existing research on the exposure phenomenon for nonfinancial firms. A simple model of exposure elasticity is also used to demonstrate the substantial impact of operational hedging on exposure elasticities. Furthermore, the evidence on the nature of firms’ financial derivative usage is considered.FindingsIt is suggested that the exposure puzzle may not be a problem of empirical methodology or sample selection as previous research has suggested, but is simply the result of the endogeneity of operative and financial hedging at the firm level. Given that empirical tests estimate exchange exposures net of corporate hedging, both firms with low gross exposures that do not need to hedge and firms with large gross exposures that employ one or several forms of hedging, may exhibit only weak exchange rate exposures net of hedging. Consequently, empirical tests yield only small percentages of firms with significant stock price exposures in almost any sample.Originality/valueIf firms react rationally to their exposures, most firms will either have no exposure to start with, or reduce their exposure to levels that may be too small to detect empirically. Consequently, the exposure puzzle may not be a problem with methodology or theory, but mainly the result of endogeneity of operative and financial hedging at the firm level.
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8

Bueno-Guerrero, Alberto. "Interest rate option hedging portfolios without bank account." Studies in Economics and Finance 37, no. 1 (September 20, 2019): 134–42. http://dx.doi.org/10.1108/sef-02-2019-0058.

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Purpose This paper aims to study the conditions for the hedging portfolio of any contingent claim on bonds to have no bank account part. Design/methodology/approach Hedging and Malliavin calculus techniques recently developed under a stochastic string framework are applied. Findings A necessary and sufficient condition for the hedging portfolio to have no bank account part is found. This condition is applied to a barrier option, and an example of a contingent claim whose hedging portfolio has a bank account part different from zero is provided. Originality/value To the best of the authors’ knowledge, this is the first time that this issue has been addressed in the literature.
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9

Badshah, Imtiaz, and Trond-Arne Borgersen. "Management of Exchange Rate Risk in SMEs." SEISENSE Journal of Management 3, no. 6 (November 11, 2020): 35–49. http://dx.doi.org/10.33215/sjom.v3i6.474.

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Exchange rate fluctuations represent a challenge for the internationalization of all firms, both big and small. This paper reflects on two aspects of the exchange rate challenge - (i) the exchange rate pass-through and (ii) hedging of exchange rate risk and how SMEs manage these two aspects of exchange rate risk. The exchange rate challenges that SMEs face might differ from the risks larger firms are exposed to, and their management of the risks might vary. In family-owned SMEs, longer planning horizons than listed firms might imply a weaker exchange rate pass-through, while smaller financial buffers might pull pass-through rules in the opposite direction for the same SMEs. When considering hedging, the paper argues for both operational hedging and external hedging to represent a management challenge for SMEs, pushing the exchange rate risk towards the forefront of the factors hampering internationalization among SMEs.
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10

Jiménez-Gómez, Miguel, Natalia Acevedo-Prins, and Miguel Rojas-López. "Evaluation of options portfolios for exchange rate hedges." Indonesian Journal of Electrical Engineering and Computer Science 21, no. 1 (January 1, 2021): 406. http://dx.doi.org/10.11591/ijeecs.v21.i1.pp406-411.

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<p><span>In this paper evaluate six exchange rate hedging strategies with financial options from the OTC market in Colombia. Three hedging strategies for importers and three for exporters were raised. The coverage for importers was carried out with the traditional strategy of long call, bull call spread and bull put spread, the last two correspond to options portfolios. the coverage for importers was carried out with the traditional strategy of long put, bear call spread and bear put spread, the last two correspond to options portfolios. to determine the best hedging strategy, the currency price was modeled with a Wiener process and the VaR for the six covered scenarios was calculated and compared with the VaR of the uncovered scenario. The results shown by the six hedging strategies manage to mitigate the exchange risk, but the most efficient strategies are the traditional ones for both importers and exporters.</span></p>
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11

Broll, Udo, and Bernhard Eckwert. "Cross-Hedging of Exchange-Rate Risk." Review of International Economics 4, no. 3 (October 1996): 282–86. http://dx.doi.org/10.1111/j.1467-9396.1996.tb00104.x.

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12

Murphy, Austin. "HEDGING FIXED-RATE PREFERRED STOCK INVESTMENTS." Journal of Applied Corporate Finance 14, no. 1 (March 2001): 80–89. http://dx.doi.org/10.1111/j.1745-6622.2001.tb00322.x.

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13

Wong, Kit Pong. "Cross-Hedging Ambiguous Exchange Rate Risk." Journal of Futures Markets 37, no. 2 (June 2, 2016): 132–47. http://dx.doi.org/10.1002/fut.21793.

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14

Goldfarb, David R. "Hedging interest rate risk in banking." Journal of Futures Markets 7, no. 1 (February 1987): 35–47. http://dx.doi.org/10.1002/fut.3990070105.

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15

Broll, Udo, Jack E. Wahl, and Itzhak Zilcha. "Indirect hedging of exchange rate risk." Journal of International Money and Finance 14, no. 5 (October 1995): 667–78. http://dx.doi.org/10.1016/0261-5606(95)00019-b.

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16

Broll, Udo, and Timothy W. Guinnane. "Interest rate futures and bank hedging." OR Spectrum 21, no. 1-2 (February 1, 1999): 71–80. http://dx.doi.org/10.1007/s002910050081.

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17

Broll, Udo. "Exchange Rate Risk, Export and Hedging." International Journal of Finance & Economics 2, no. 2 (April 1997): 145–50. http://dx.doi.org/10.1002/(sici)1099-1158(199704)2:2<145::aid-jfe37>3.0.co;2-v.

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18

Akhmedov, Fakhraddin, Mhd Zeitoun, and Humssi Al. "Financial engineering to optimize risk management in banks based on Interest Rate Swaps to better hedge the exposure to interest rate fluctuations the case of banks in Syria." International Review, no. 1-2 (2021): 99–107. http://dx.doi.org/10.5937/intrev2102101a.

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The banking system is affected by uncertainties related to the evolution of pandemic. One of the identified risks is that of a fluctuation of rates. Volatility of Interest rates is one of the major risks for the banking system. Therefore, financial engineering can be used as a very important hedging practice for banks against such a risk. The aim of this study is to develop a risk hedging mechanism to better overcome market volatility by hedging position against the exposure to interest rate risk based on credit derivatives. Therefore, this study uses Interest Rate Swaps (IRS)s to better hedge the exposure of banks to interest rate fluctuations in stress conditions giving consideration to the case study of banks in Syria in optimizing hedging practices based on Interest Rate Swaps. The aim is to use financial engineering to provide banks with a hedging technique to better absorb shocks in times of stress conditions. This has been discussed and illustrated with visual model diagrams. The case study of banks in Syria is not just the story of individual banks but a window into how to hedge the exposure of banks in stress conditions. In the end, most banking crises are quite similar. The recommendations set out in this study provide banks with an optimized hedging practice which is not part of current financial engineering at banks in Syria.
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19

Frensidy, Budi, and Tasya Indah Mardhaniaty. "The Effect of Hedging with Financial Derivatives on Firm Value at Indonesia Stock Exchange." Economics and Finance in Indonesia 65, no. 1 (August 2, 2019): 20. http://dx.doi.org/10.47291/efi.v65i1.614.

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This study aims to analyze the effect of hedging for the risks of foreign currency, interest rate, and commodity price on firm value as measured by Tobin’s Q. The findings reveal that hedging with derivative instruments is insignificantly related to firm value but significantly varied in financial risks. Hedging for foreign currency risk has a significantly positive relation to firm value, while hedging for interest rate and commodity price risk has no relation. Furthermore, this study provides a novelty compared to previous studies in the utilization of the extent of hedging as the variable to measure the implementation of hedging.
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20

Sasmitapura, Angga, and Hamfri Djajadikerta. "Apakah Financial Dan Operational Hedging Efektif Mengurangi Eksposur Nilai Tukar?" Jurnal Akuntansi Kontemporer 13, no. 1 (January 2021): 12–26. http://dx.doi.org/10.33508/jako.v13i1.2758.

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n the midst of regulators' efforts to deepen the market by encouraging foreign exchange derivative transactions, this study aims to observe the effect of these derivative instruments from company perspective in reducing exchange rate exposures. In addition to hedge using derivative instruments (financial hedging), this study also observed hedging performed through firm’s operational activity (operational hedging) with control variables of export sales and foreign debt. The research object is manufacturing companies listed in IDX (Indonesia Stock Exchange) during 2010-2018 using panel data regression as data analysis method. Empirical results show that financial hedging reduce exchange rate exposures faced by companies while operational hedging has no effect. Export sales provide positive exchange rate exposures and foreign debt provide negative exchange rate exposures.
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21

Privault, Nicolas, and Timothy Robin Teng. "Risk-neutral hedging of interest rate derivatives." Risk and Decision Analysis 3, no. 3 (2012): 201–9. http://dx.doi.org/10.3233/rda-2011-0061.

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22

Crabb, Peter R. "Multinational corporations and hedging exchange rate exposure." International Review of Economics & Finance 11, no. 3 (January 2002): 299–314. http://dx.doi.org/10.1016/s1059-0560(02)00110-7.

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23

Cone, Thomas E., and Paul Shea. "LEARNING, HEDGING, AND THE NATURAL RATE HYPOTHESIS." Macroeconomic Dynamics 23, no. 5 (August 24, 2017): 2009–34. http://dx.doi.org/10.1017/s1365100517000578.

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We assume that firms are more risk averse than households and that they manage their risk through a financial sector, which consists of learning and hedging. Firms that learn (by observing demand shocks) face less uncertainty and produce more than firms that hedge (by selling future production at a fixed price). If a policy or parameter change stabilizes the economy, then there is less learning and usually less production. Welfare, however, is usually maximized when the financial sector, which requires inputs but does not directly provide utility or affect production, is smallest. Monetary policy can improve welfare by either taxing learning or subsidizing hedging. If firms are risk averse over nominal profits instead of real profits, then interest rate policy can also improve welfare by stabilizing prices and thus minimizing the size of the financial sector.
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24

Allayannis, George, Jane Ihrig, and James P. Weston. "Exchange-Rate Hedging: Financial versus Operational Strategies." American Economic Review 91, no. 2 (May 1, 2001): 391–95. http://dx.doi.org/10.1257/aer.91.2.391.

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25

Adams, James, and Donald J. Smith. "Pre-Issuance Hedging of Fixed-Rate Debt." Journal of Applied Corporate Finance 23, no. 4 (December 2011): 102–12. http://dx.doi.org/10.1111/j.1745-6622.2011.00356.x.

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26

Maris, Brian A., and Harry L. White. "Valuing and hedging fixed rate mortgage commitments." Journal of Real Estate Finance and Economics 2, no. 3 (September 1989): 223–32. http://dx.doi.org/10.1007/bf00152350.

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27

Fortin, Michel, and Nabil Khoury. "Hedging Interest Rate Risks with Financial Futures." Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration 1, no. 2 (April 8, 2009): 367–82. http://dx.doi.org/10.1111/j.1936-4490.1984.tb00297.x.

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28

Rossi, Eduardo, and Claudio Zucca. "Hedging interest rate risk with multivariate GARCH." Applied Financial Economics 12, no. 4 (April 2002): 241–51. http://dx.doi.org/10.1080/09603100110088094.

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29

Hawkins, J. E. "Freight rate hedging in the Pacific Rim." Marine Policy 15, no. 6 (November 1991): 459–61. http://dx.doi.org/10.1016/0308-597x(91)90054-f.

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30

Broll, Udo, and Kit Pong Wong. "Trade and cross hedging exchange rate risk." International Economics and Economic Policy 12, no. 4 (May 15, 2014): 509–20. http://dx.doi.org/10.1007/s10368-014-0291-x.

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31

Broll, Udo, Jack E. Wahl, and Itzhak Zilcha. "Hedging exchange rate risk: The multiperiod case." Research in Economics 53, no. 4 (December 1999): 365–80. http://dx.doi.org/10.1006/reec.1999.0206.

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32

BRODÉN, MATS, and PETER TANKOV. "TRACKING ERRORS FROM DISCRETE HEDGING IN EXPONENTIAL LÉVY MODELS." International Journal of Theoretical and Applied Finance 14, no. 06 (September 2011): 803–37. http://dx.doi.org/10.1142/s0219024911006760.

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We analyze the errors arising from discrete readjustment of the hedging portfolio when hedging options in exponential Lévy models, and establish the rate at which the expected squared error goes to zero when the readjustment frequency increases. We compare the quadratic hedging strategy with the common market practice of delta hedging, and show that for discontinuous option pay-offs the latter strategy may suffer from very large discretization errors. For options with discontinuous pay-offs, the convergence rate depends on the underlying Lévy process, and we give an explicit relation between the rate and the Blumenthal-Getoor index of the process.
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33

Chernenko, Sergey, and Michael Faulkender. "The Two Sides of Derivatives Usage: Hedging and Speculating with Interest Rate Swaps." Journal of Financial and Quantitative Analysis 46, no. 6 (June 1, 2011): 1727–54. http://dx.doi.org/10.1017/s0022109011000391.

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AbstractExisting cross-sectional findings on nonfinancial firms’ use of derivatives that are usually interpreted as the result of hedging may alternatively be due to speculation. Panel data examinations can distinguish between derivatives practices that endure over time and are therefore more likely to result from hedging, and those that are more transient, thus more consistent with speculation. Our decomposition results indicate that hedging of interest rate risk is concentrated among high-investment firms, consistent with costly external finance. Simultaneously, firms appear to use interest rate swaps to manage earnings and to speculate when their executive compensation contracts are more performance sensitive.
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34

Sikarwar, Ekta, and Roopak Gupta. "Economic exposure to exchange rate risk and financial hedging." Journal of Economic Studies 46, no. 4 (August 5, 2019): 965–84. http://dx.doi.org/10.1108/jes-10-2017-0286.

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Purpose The purpose of this paper is to examine the potential non-linear relationship between family ownership as a governance mechanism and exchange rate exposure of firms that use financial hedging. Design/methodology/approach The exchange rate exposure is estimated using two-factor Jorion (1990) model for a sample of 312 Indian firms over the period from 2001 to 2016. The cross-sectional regression model is used at the second stage to investigate the effects of family ownership on exposure for the firms that use currency derivatives. Findings The results suggest a significant non-linear cubic relationship between family ownership and exchange rate exposure. Exchange rate exposure increases with family ownership at low and high levels (as a result of improper hedging) and decreases with family ownership at intermediate levels (as a consequence of value-enhancing hedging). Practical implications The study has practical significance for firms to understand the circumstances in which currency derivatives usage is ineffective in alleviating exposure. Firms that have high or low family ownership should integrate operational hedges with financial hedges and should incorporate other firm-level governance mechanisms to avoid the misuse of derivatives. Originality/value This study provides new evidence that the relationship between family ownership and exchange rate exposure is non-linear for firms that use financial hedging which has not been investigated before in the prior literature.
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35

Wang, Liang, Xianyan Xiong, and Mengmeng Hui. "Research on Financial Hedging Decision Based on Exchange Rate Risk in Transnational Supply Chain." Discrete Dynamics in Nature and Society 2021 (September 13, 2021): 1–26. http://dx.doi.org/10.1155/2021/5548386.

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This paper considers a three-echelon manufacturer-retailer-supplier supply chain, the purpose of which is to investigate the influence of the bilateral exchange rate risks of import and export and the leading company’s financial hedging on the decision-makers of the supply chain. Firstly, it constructs the profit function and the financial hedging decision-making model of each member in the decentralized supply chain. Secondly, it introduces the incentive mechanism of exchange rate risk hedging in the centralized supply chain. Thirdly, from the perspective of wholesale price agreements and revenue-sharing contracts, it discusses the impact of financial hedging behavior and bilateral exchange rate risks on the decision-making process of each member through mathematical modeling. Finally, it explores the relationships of decision variables through simulation analysis. The results illustrate that (i) for decentralized and centralized decision-making, the manufacturer’s expected profit and profit variance decrease with the increase of the fluctuations of import and export exchange rates under the hedging strategy for exchange rate risks; (ii) compared with the decentralized supply chain, the manufacturer’s expected profit in the centralized supply chain decreases slightly under the revenue-sharing contract; (iii) in the centralized supply chain, if the manufacturer’s risk hedging ratio is high, its profit variance is smaller than that of the decentralized supply chain and the expected profits of the retailer and the supplier will increase significantly; and (iv) for the members of the transnational supply chain, centralized decision-making is better than decentralized decision-making.
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36

Huang, Jiemin, Jiaoju Ge, Kai Chang, and Yixiang Tian. "Dynamic hedging analysis of carbon emission trading yield in Shenzhen." Energy & Environment 31, no. 5 (October 23, 2019): 870–85. http://dx.doi.org/10.1177/0958305x19882409.

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The paper selected the carbon emission trading yields data from 2014 to 2017 in Shenzhen. A generalized autoregressive conditional heteroscedasticity model was used to find the best way to hedge the risk of spot carbon emissions in Shenzhen carbon emission trading exchange market. The variances of carbon spot and coal futures were first examined. The dynamic hedging rate was calculated too. The results showed that according to the actual data and market change strategies, the dynamic hedging rate is better than the optimal hedging rate that can hedge risk better. The carbon emission trading yield was found to exhibit aggregate fluctuation; in addition, the dynamic hedging can better hedge risk timely than static hedging. This provides investors with the basis for decision-making to hedge risk in carbon emission trading and helps investors to maximize their returns under certain risk conditions.
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37

Amer, Islam. "Modelling foreign exchange rate transaction exposure of UK insurance companies." Journal of Economic and Administrative Sciences 32, no. 2 (November 21, 2016): 120–36. http://dx.doi.org/10.1108/jeas-05-2015-0013.

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Purpose The purpose of this paper is to study the sensitivity of foreign exchange exposure through the cash flow estimation method using a sample of 59 UK insurance companies. This approach allows a decomposition of exposures into short- and long-term components. By revealing the nature of their cash flow exposures, companies can evaluate the effectiveness of their hedging programmes and focus their hedging efforts according to the nature of their exposures. Design/methodology/approach Martin and Mauer’s (2003, 2005) three-stage model is used to estimate foreign exchange rate transaction exposures for the sample of 65 UK insurance companies over the period 2004-2013. However, this paper has one important innovation to this method. Instead of the model used in previous papers, the paper uses a model from the actuarial field that was proposed by Blum et al. (2001) for modelling foreign exchange rates with their relevant constituents (inflation and interest rate). Findings The evidence shows that the currency transaction exposure for non-life insurers is greater than that of life insurers. Moreover, the author finds that large insurers exhibit lower frequencies of foreign exchange transaction exposure than small insurers. Originality/value The value of this paper comes from the fact that revealing the nature of cash flow exposures, companies can evaluate the effectiveness of their hedging programmes and focus their hedging efforts according to the nature of their exposures.
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38

Castillo R., Augusto. "Exchange Rate Exposure and Optimal Hedging Strategies when Interest Rates are Stochastic: a Simulation-Based Approach." Estudios de Administración 10, no. 1 (March 9, 2020): 1. http://dx.doi.org/10.5354/0719-0816.2003.56778.

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In this paper i analyze the problem faced by an investor expecting to receive a cash flow in a foreign currency. The investor is assumed to be exposed to long-term exchange rate risk, having no access to long-term forward contracts to hedge perfectly. Under non stochastic interest rates the investor is able to hedge perfectly using short-term forward contracts, but perfect hedging is not possible when we consider interest rates to be stochastic. I present here a simulation-based methodology to obtain optimal hedging under stochastic interest rates (i.e. when perfect hedging can not be reached). Then, i explore how we quality of the hedging to be reached depends on some key factors such as the volatility of the exchange rate, the volatility of the interest rates, and the degree of correlation among the stochastic variables considered.
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39

., Farhana, and Ratih Puspitasari. "Analisis Lindung Nilai Dengan Menggunakan Swap Dan Forward Untuk Mengurangi Resiko Transaction Eksposure." Jurnal Ilmiah Manajemen Kesatuan 5, no. 1 (July 16, 2018): 48–57. http://dx.doi.org/10.37641/jimkes.v5i1.26.

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Hedging is the one of activities is performed by a company or a bank to protect their business from the risk of changes caused by exchange rates or exchange rate fluctuations. There are some things that should be considered by companies whom often perform the transactions related to interest rate and exchange rate. For example, banks should monitor the company performance against losses caused by foreign exchange and also arrange the strategy, because it is necessary for the company to perform hedging. The research is purposed to learn how to minimize the risks of losses experienced by banks due to hedging techniques usage. The hedging techniques performed are swap and forward hedging. The method used in this study correlation coefficient and simple regression to determine the relationship between the variables in question. The result of this research shows that hedging technique in the buying and selling transactions of foreign exchange has more benefit rather than not. It can avoid the risks of transaction exposures. It can be seen from the significant level, Forward has the significant level in the amount of 0,000. It means the Forward Hedging Technique has an effect to the transaction exposure and Hedging transaction using Swap has the benefit rather than not. The significant level in the amount of 0,007 is smaller than 0,05. It means that Swap Hedging Technique has an effect to the transaction exposure. Accordingly, Forward and Swap deserve to be considered by companies or banks to avoid the risks of transaction exposures.
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40

Sobti, Rajiv, and George Sykes. "Evaluation and Hedging of Interest Rate Caps in Flaoting-Rate Mortgages." Journal of Fixed Income 2, no. 4 (March 31, 1993): 74–85. http://dx.doi.org/10.3905/jfi.1993.408062.

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41

Adami, Usman. "Analisa Aplikasi Hedging Sebagai Perlindungan Transaksi Ekspor Oleh Eksportir Di Sulawesi Selatan." JURNAL MANAJEMEN MOTIVASI 10, no. 1 (January 22, 2015): 290. http://dx.doi.org/10.29406/jmm.v10i1.12.

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This study aimed to examine the effect of exchange rate value of the forward rate hedging transactions carried out by the exporter. Transaction data used are five export commodities of 6 exporter in Southern Sulawesi with the number of transactions was 612 times. To calculate the multiple regression equation used method OLS (Ordinary Least Square). Results are transasksi value hedging is done by 6 to 5 export commodity exporters in South Sulawesi was very influenced significantly by Value Forward Spot Rate (X), with regard to indicators of external factors before deciding to make Hedging Export.
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42

Kim, Young Sang. "Global Diversification and Hedging by High Technology Firms." Journal of Derivatives and Quantitative Studies 21, no. 4 (November 30, 2013): 383–409. http://dx.doi.org/10.1108/jdqs-04-2013-b0002.

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This paper examines the operational hedging strategies of high technology firms and how they are related to financial hedging. We use a sample of 216 firms, consisting of 108 operationally-hedged high technology firms and a size and industry matched sample of 108 non-operationally-hedged firms. We find that derivatives users are larger and are more R&D intensive than non-derivative users. Our regression analysis results show that operational hedging and financial hedging are complementary. However, firms that use financial hedging are able to significantly lower their exchange rate exposure. Finally, our results show that financial hedging adds value for our sample of high technology firms, while operational hedging does not.
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43

de Villiers, Johann. "Short-Term Interest Rate Hedging: Hedge Ratios Revisited." CFA Digest 27, no. 2 (May 1997): 60–61. http://dx.doi.org/10.2469/dig.v27.n2.73.

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44

Garber, Peter M., and Michael G. Spencer. "Foreign Exchange Hedging and the Interest Rate Defense." Staff Papers - International Monetary Fund 42, no. 3 (September 1995): 490. http://dx.doi.org/10.2307/3867530.

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45

Yu, Xing, Wei Guo Zhang, Yong Jun Liu, Xinxin Wang, and Chao Wang. "Hedging the exchange rate risk for international portfolios." Mathematics and Computers in Simulation 173 (July 2020): 85–104. http://dx.doi.org/10.1016/j.matcom.2020.02.014.

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46

Sweeney, Mary Elizabeth. "Interest rate hedging and equity duration: Australian evidence." International Review of Financial Analysis 7, no. 3 (January 1998): 277–98. http://dx.doi.org/10.1016/s1057-5219(99)80018-0.

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47

BATTERMANN, HARALD L., UDO BROLL, and KIT PONG WONG. "CROSS-HEDGING OF EXCHANGE RATE RISKS: A NOTE*." Japanese Economic Review 57, no. 3 (September 2006): 449–53. http://dx.doi.org/10.1111/j.1468-5876.2006.00318.x.

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48

Álvarez-Díez, Susana, Eva Alfaro-Cid, and Matilde O. Fernández-Blanco. "Hedging foreign exchange rate risk: Multi-currency diversification." European Journal of Management and Business Economics 25, no. 1 (January 2016): 2–7. http://dx.doi.org/10.1016/j.redee.2015.11.003.

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Sikarwar, Ekta, and Ganesh Kumar Nidugala. "Ownership structure, hedging incentives and exchange rate exposure." International Journal of Corporate Governance 9, no. 1 (2018): 52. http://dx.doi.org/10.1504/ijcg.2018.090618.

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Sikarwar, Ekta, and Ganesh Kumar Nidugala. "Ownership structure, hedging incentives and exchange rate exposure." International Journal of Corporate Governance 9, no. 1 (2018): 52. http://dx.doi.org/10.1504/ijcg.2018.10011760.

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