The Importance of Corporate Foreign Debt in Managing Exchange Rate Exposure in Non-Financial Companies
| Autor: | Tom Aabo |
|---|---|
| Rok vydání: | 2023 |
| Předmět: |
Finance
History Polymers and Plastics business.industry Debt-to-GDP ratio External debt Industrial and Manufacturing Engineering Interest rate parity Accounting Debt ratio Business Internal debt Debt levels and flows Business and International Management Foreign exchange risk General Economics Econometrics and Finance Foreign exchange market |
| Zdroj: | Aarhus University Aabo, T 2006, ' The Importance of Corporate Foreign Debt in Managing Exchange Rate Exposure in Non-Financial Companies ', European Financial Management, vol. 12, no. 4, pp. 633-649 . |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.4357508 |
| Popis: | Udgivelsesdato: SEP This empirical study of the exchange rate exposure management of Danish non-financial firms listed on the Copenhagen Stock Exchange shows that debt denominated in foreign currency (foreign debt) is a very important alternative to the use of currency derivatives. The results show that the relative importance of foreign debt is positively related to (1) the extent of foreign subsidiaries, (2) the relative value of assets in place, and (3) the debt ratio. The pivotal role of time horizon is emphasised. These findings are important to firms in other countries with open economies. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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