Asymmetric Exposure to Foreign-Exchange Risk: Financial and Real Option Hedges Implemented by U.S. Multinational Corporations

Topics:
Inflation,
Investment and Capital Markets
Tags:
Currency & Foreign Exchange,
Exposure,
Finance,
Financial,
Foreign-exchange,
Hedge
Source:
Financial Management Association International

FREE Registration is required

Overview: The study presented in this paper investigates the influence of both financial and operational hedges on the foreign-exchange exposure of U.S. multinational corporations. Three important contributions to the authors' research are to provide evidence that exposure of U.S. MNCs to foreign-exchange risk is asymmetric; the authors' results demonstrate that both operational and financial hedges can effectively reduce foreign-currency exposure; and the authors' found evidence suggesting that operational hedges serve as real options in that exposure varies not only as to whether the firm is a "Net importer" or "Net exporter" but also across weak and strong dollar states.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 331KB | Date: Dec 2003 | Pages: 50

People who downloaded this item also downloaded

White Paper SWOT Analysis - To Make Your Business More Profitable
White Paper International Business And Institutional Development In Central And Eastern Europe
White Paper Foreign Direct Investment And Forward Hedging
White Paper Intel: A Case Study Of Foreign Direct Investment In Central America
White Paper Reverse Logistics-A Review of Case Studies

Top results from Investment and Capital Markets

White Paper Risk Analysis and Capital Adequacy of Hedge Funds
White Paper On the Performance of Alternative Investments: CTAs, Hedge Funds, and Funds-of-Funds
White Paper Intermediary Risk In The Indirect Holding System For Securities
White Paper Hedge Funds & Listed Options: Portfolio Management Strategies
White Paper European Asset Management Industry Set for Slower Profit Growth, According to Oliver, Wyman & Company and UBS Warburg

» View all Investment and Capital Markets listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).