全球智库信息集成服务系统(G2TT): DP16232 Currency Hedging: Managing Cash Flow Exposure

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16232
	DP16232 Currency Hedging: Managing Cash Flow Exposure
	Laura Alfaro; Mauricio Calani; Liliana Varela
发表日期	2021-06-08
出版年	2021
语种	英语
摘要	Foreign currency use can be a source of risk associated with currency mismatches, which firms can hedge using FX derivatives. This paper uncovers five novel facts about firms' use of foreign currency (FX) derivatives employing a unique dataset covering the universe of FX derivatives transactions in Chile from 2005-2018, together with firm-level census data on employment, sales, international trade, trade credits, and foreign currency debt. (i) Natural hedging of currency risk is limited. (ii) FX hedging is more likely to be used by larger firms and for larger amounts. (iii) Firms in international trade are more likely to use FX derivatives to hedge their gross---not net---cash flow currency risk. (iv) The FX premium is heterogeneous across and within firms, higher for smaller firms and longer maturity contracts. (v) Macroeconomics conditions affect firms' hedging policies, as changes in the liquidity of the FX market affect firms' use. Our results indicate that financial constraints impact the use of FX derivatives, affecting how firms use these instruments to manage cash flow commitments.
主题	International Macroeconomics and Finance ; Macroeconomics and Growth
关键词	Fx hedging Fx derivatives Cash flow Foreign debt Currency mismatch Trade credit
URL	https://cepr.org/publications/dp16232-0
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545200
推荐引用方式 GB/T 7714	Laura Alfaro,Mauricio Calani,Liliana Varela. DP16232 Currency Hedging: Managing Cash Flow Exposure. 2021.