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The importance of corporate foreign debt as an alternative to currency derivatives in actual management of exchange rate exposures. / Aabo, Tom.
2005. Paper presented at European Financial Management Association 2005 Annual Conference, Milan, Italy.Research output: Contribution to conference › Paper › Research
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TY - CONF
T1 - The importance of corporate foreign debt as an alternative to currency derivatives in actual management of exchange rate exposures
AU - Aabo, Tom
PY - 2005
Y1 - 2005
N2 - This empirical study of the exchange rate exposure management of Danish non-financial firms listed on the Copenhagen Stock Exchange shows that debt denominated in foreign currency ("foreign debt") is a very important alternative to the use of currency derivatives. The results show that the relative importance of foreign debt is positively related to (1) the extent of foreign subsidiaries, (2) the relative value of assets in place, (3) the size of the firm, and (4) the debt ratio. The pivotal role of time horizon is emphasized. These findings are important to firms in other countries with open economies.
AB - This empirical study of the exchange rate exposure management of Danish non-financial firms listed on the Copenhagen Stock Exchange shows that debt denominated in foreign currency ("foreign debt") is a very important alternative to the use of currency derivatives. The results show that the relative importance of foreign debt is positively related to (1) the extent of foreign subsidiaries, (2) the relative value of assets in place, (3) the size of the firm, and (4) the debt ratio. The pivotal role of time horizon is emphasized. These findings are important to firms in other countries with open economies.
M3 - Paper
Y2 - 29 June 2005 through 2 July 2005
ER -