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2015 Conference

del 15 al 16 de October del 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

When Actions Speak Louder than Words: Currency Management in Non-Financial Corporations

jueves, el 15 de octubre de 2015 a las 08:45–10:15 EDT
Scotland AB
Keywords: 5 words maximum

currency risk management, derivatives, hedging

Very short description for use in the program to help attendees understand more than a title can describe

Using a unique data set with complete firm-level components of currency positions, we examine whether large multinational non-financial firms are speculating or hedging as they manage their currency spot and derivatives positions. We find a notable discord between the stated policies of companies and their actions. We also find that the transactions they undertake are associated with market shock variables. Overall, the evidence strongly suggests that these non-financial firms are speculating instead of hedging when they manage their currency spot and derivatives positions. Moreover, we find that even when they are hedging, they are still attempting to time the market. 

Lead & Corresponding Author

Dr. Sungjae Francis Kim, Gardner-Webb University
Job Title

Assistant Professor of Finance

Additional Authors

Dr. Don M Chance, Ph.D., Louisiana State University - Department of Finance
Job Title

Professor of Finance

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