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Integrated Foreign Exchange Risk Management: The Role of Import in Medium-Sized, Manufacturing Firms

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  • Tom Aabo
  • Esben Høg, Denmark
  • Jochen Kuhn, A.P. Møller - Maersk A/S, Denmark
Empirical research has focused on export as a proxy for the exchange rate exposure and the use of foreign exchange derivatives as the instrument to deal with this exposure. This empirical study applies an integrated foreign exchange risk management approach with a particular focus on the role of import in medium-sized, manufacturing firms in Denmark (a small, open economy). We find a strong, negative relation between import and foreign exchange derivatives usage on the aggregate level. Our findings are consistent with the notion that firms use import to match the foreign exchange exposure created by foreign sales activities.
Original languageEnglish
Publication year2009
Number of pages44
Publication statusPublished - 2009
EventFinancial Management Association International, 2009 FMA European Conference - Torino, Italy
Duration: 4 Jun 20095 Jun 2009


ConferenceFinancial Management Association International, 2009 FMA European Conference

    Research areas

  • Integrated Foreign Exchange Risk Management, Import, Medium-Sized Firms

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