Who Pulls the Trigger? Evidence on Corporate Currency Speculation

Research output: Contribution to conferencePaperResearchpeer-review

  • Tom Aabo
  • Marianna Andryeyeva Hansen, Novozymes A/S, Denmark
  • Christos Pantzalis, University of South Florida, United States
This empirical study of non-financial firms is based on a survey of 186 medium-sized, non-financial Danish firms with operating revenues and/or costs in foreign currency. We find that the involvement of non-finance departments in the management of exchange rate risks has a positive impact on currency speculation whether in the form of selective hedging or active speculation. This result adds to the literature and is important given the increasing focus on an integrated perspective on risk management in non-financial firms. We furthermore find and confirm previous studies that currency speculation is widespread also among Danish firms and that such speculation is positively related to the degree of international involvement of the specific firm.

Original languageEnglish
Publication year2010
Publication statusPublished - 2010
Event2010 FMA Annual Meeting - New York, United States
Duration: 20 Oct 201023 Oct 2010

Conference

Conference2010 FMA Annual Meeting
CountryUnited States
CityNew York
Period20/10/201023/10/2010

    Research areas

  • Exchange rate exposure management, Corporate speculation, Selective hedging, Non-finance departmental involvement

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