The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation
This paper studies the use of foreign currency derivatives for a sample of non-financial Brazilian companies from 1996 to 2004. The paper verifies that some of the hypotheses presented by the optimal hedging literature are able to explain the Brazilian companies decision to use currency derivatives...
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| Format: | Article |
| Language: | English |
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Brazilian Society of Finance
2007-12-01
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| Series: | Revista Brasileira de Finanças |
| Subjects: | |
| Online Access: | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1172 |
| _version_ | 1818484525133463552 |
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| author | José Luiz Rossi Júnior |
| author_facet | José Luiz Rossi Júnior |
| author_sort | José Luiz Rossi Júnior |
| collection | DOAJ |
| description | This paper studies the use of foreign currency derivatives for a sample of non-financial Brazilian companies from 1996 to 2004. The paper verifies that some of the hypotheses presented by the optimal hedging literature are able to explain the Brazilian companies decision to use currency derivatives and their decision on the amount to use. Moreover, the paper shows that the macroeconomic environment and country-specific factors not analyzed in previous empirical work also play a role in determining the companies risk management practices and that the use of currency derivatives has an impact on the ompanies decision regarding their capital structure and the currency composition of their debt. |
| first_indexed | 2024-12-10T15:56:43Z |
| format | Article |
| id | doaj.art-c899a77fea094214a9fe59ce24bace4e |
| institution | Directory Open Access Journal |
| issn | 1679-0731 1984-5146 |
| language | English |
| last_indexed | 2024-12-10T15:56:43Z |
| publishDate | 2007-12-01 |
| publisher | Brazilian Society of Finance |
| record_format | Article |
| series | Revista Brasileira de Finanças |
| spelling | doaj.art-c899a77fea094214a9fe59ce24bace4e2022-12-22T01:42:38ZengBrazilian Society of FinanceRevista Brasileira de Finanças1679-07311984-51462007-12-0152205232The Use of Currency Derivatives by Brazilian Companies: An Empirical InvestigationJosé Luiz Rossi JúniorThis paper studies the use of foreign currency derivatives for a sample of non-financial Brazilian companies from 1996 to 2004. The paper verifies that some of the hypotheses presented by the optimal hedging literature are able to explain the Brazilian companies decision to use currency derivatives and their decision on the amount to use. Moreover, the paper shows that the macroeconomic environment and country-specific factors not analyzed in previous empirical work also play a role in determining the companies risk management practices and that the use of currency derivatives has an impact on the ompanies decision regarding their capital structure and the currency composition of their debt.http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1172HedgingForeign DebtCurrency DerivativesEmerging MarketBrazil |
| spellingShingle | José Luiz Rossi Júnior The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation Revista Brasileira de Finanças Hedging Foreign Debt Currency Derivatives Emerging Market Brazil |
| title | The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation |
| title_full | The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation |
| title_fullStr | The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation |
| title_full_unstemmed | The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation |
| title_short | The Use of Currency Derivatives by Brazilian Companies: An Empirical Investigation |
| title_sort | use of currency derivatives by brazilian companies an empirical investigation |
| topic | Hedging Foreign Debt Currency Derivatives Emerging Market Brazil |
| url | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1172 |
| work_keys_str_mv | AT joseluizrossijunior theuseofcurrencyderivativesbybraziliancompaniesanempiricalinvestigation AT joseluizrossijunior useofcurrencyderivativesbybraziliancompaniesanempiricalinvestigation |