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The management of currency risk: evidence from UK company disclosures

Muff, A. M. (2007) The management of currency risk: evidence from UK company disclosures. Paper presented to: 1st European Risk Management Conference, Munster, Germany, 5-7 September 2007. Keynote speaker (Unpublished)

Item Type: Conference or Workshop Item (Paper)
Abstract: This paper examines the use of currency derivatives and/or currency borrowing in a sample of 277 non financial firms taken from the UK actuaries all share index that were reporting continual data on DATASTREAM for the year 1995-2001. The results of the univariate and multivariate tests indicate those UK firms with compensation packages that favour share options are less likely to hedge. Furthermore firms with low profitability, high growth opportunities, and higher tax liabilities are also more likely to use currency derivatives. In conclusion, the variables deemed important determinants of hedging using derivatives appear to have little to do with the decision to raise currency debt.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
H Social Sciences > HF Commerce > HF5601 Accounting
Creators: Muff, Anthony M
Faculties, Divisions and Institutes: University Faculties, Divisions and Research Centres - OLD > Faculty of Business & Law > Accounting and Finance
Faculties > Faculty of Business & Law > Accounting & Finance
Date: 5 September 2007
Date Type: Presentation
Event Title: 1st European Risk Management Conference
Event Dates: 5-7 September 2007
Event Location: Munster, Germany
Event Type: Conference
Language: English
Status: Unpublished
Related URLs:
URI: http://nectar.northampton.ac.uk/id/eprint/419

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