English, Article, Journal or magazine article edition: Over the hedge? Exporters' optimal and selective hedging choices Richard Fabling; Arthur Grimes

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/32576
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Over the hedge? Exporters' optimal and selective hedging choices
Author
  • Richard Fabling
  • Arthur Grimes
Physical Description
  • preprint
Notes
  • How do exporting firms manage currency exposures? We examine this issue at the firm level using comprehensive data from the prototype Longitudinal Business Database recently developed by Statistics New Zealand. We use these data to test both optimal and selective hedging theories. Optimal hedging theory hypothesises that firms hedging choices depend on the probability and cost of financial distress, underinvestment risks, scale, managerial risk aversion, information asymmetry, governance, ownership structures and tax rules. Recent literature suggests that some firms vary hedging positions relative to their optimal position in a selective attempt to beat the market . We examine whether hedging behaviour is consistent with hypotheses derived from optimal hedging theories, and test whether hedging positions change (possibly sub-optimally) when the NZD/​AUD is perceived to be high or low relative to an historical average. Optimal and selective hedging theories are both supported by the data. Estimation is over July 2000 to March 2007 (monthly) a period during which the NZD/​AUD varied substantially, making this a particularly pertinent period to test exporters currency risk management practices. Classification-D21, F31, G15
  • RePEc:nzb:nzbdps:2008/​14
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment