Aarhus University Seal / Aarhus Universitets segl

Exchange Rate Exposure Management: "Speculation" in Non-Financial Companies

Research output: Contribution to conferencePaperResearch

Documents

  • 0003098

    Final published version, 55.7 KB, PDF document

"Speculation" in non-financial companies in relation to exchange rate exposure management constitutes one of the contributing factors behind corporate (or more widespread) crises. Deviations from benchmark positions constitute speculation. An empirical study of Danish non-financial companies finds that the larger the company (ability) and the larger its relative sale on foreign markets (relevance), the more likely the company will be to benchmark its exchange rate exposures. However, at the same time the very same factors (size and foreign sale) lead to more extensive speculation. Financial solvency (value) does not seem to have a significant effect on the extent of benchmarking / speculation. Additional economic sector effects are only present in the case of speculation where companies in Materials tend to speculate more than other companies.
Original languageEnglish
Publication year2002
Publication statusPublished - 2002
Event2nd International Conference on Banking and Finance -
Duration: 9 Aug 200211 Aug 2002

Conference

Conference2nd International Conference on Banking and Finance
Period09/08/200211/08/2002

See relations at Aarhus University Citationformats

Download statistics

No data available

ID: 32333219