An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.

This paper empirically examines foreign exchange (FX) hedging by UK firms to provide evidence on the determinants of a firm’s decision to hedge FX. This study provides a unique insight into the topic by employing a comparative study on the determinants of FX hedging, transaction exposure hedging and...

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Main Author: Ryan, Katrina
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Online Access:https://eprints.nottingham.ac.uk/46755/
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author Ryan, Katrina
author_facet Ryan, Katrina
author_sort Ryan, Katrina
building Nottingham Research Data Repository
collection Online Access
description This paper empirically examines foreign exchange (FX) hedging by UK firms to provide evidence on the determinants of a firm’s decision to hedge FX. This study provides a unique insight into the topic by employing a comparative study on the determinants of FX hedging, transaction exposure hedging and translation exposure hedging. Through a series of univariate and multivariate tests, firm size, foreign exposure and leverage are found to be the most powerful explanatory variables in a firm’s decision to hedge FX and its exposures. Moreover, an investigation into the definition of FX hedgers indicates that a more inclusive definition provides more significant, yet similar results.
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spelling nottingham-467552018-04-15T15:52:19Z https://eprints.nottingham.ac.uk/46755/ An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms. Ryan, Katrina This paper empirically examines foreign exchange (FX) hedging by UK firms to provide evidence on the determinants of a firm’s decision to hedge FX. This study provides a unique insight into the topic by employing a comparative study on the determinants of FX hedging, transaction exposure hedging and translation exposure hedging. Through a series of univariate and multivariate tests, firm size, foreign exposure and leverage are found to be the most powerful explanatory variables in a firm’s decision to hedge FX and its exposures. Moreover, an investigation into the definition of FX hedgers indicates that a more inclusive definition provides more significant, yet similar results. 2017-09-28 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/46755/1/Final%20Dissertation%20.pdf Ryan, Katrina (2017) An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms. [Dissertation (University of Nottingham only)]
spellingShingle Ryan, Katrina
An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title_full An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title_fullStr An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title_full_unstemmed An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title_short An Empirical Investigation into the Determinants of Foreign Exchange Hedging and its Exposures for UK Firms.
title_sort empirical investigation into the determinants of foreign exchange hedging and its exposures for uk firms.
url https://eprints.nottingham.ac.uk/46755/