Foreign currency derivative use and shareholder value

Article

Clark, E., Belghitar, Y. and Mefteh, S. 2012. Foreign currency derivative use and shareholder value. International Review of Financial Analysis. https://doi.org/10.1016/j.irfa.2012.02.004
TypeArticle
TitleForeign currency derivative use and shareholder value
AuthorsClark, E., Belghitar, Y. and Mefteh, S.
Abstract

This paper investigates the effect of foreign currency (FC) derivative use on shareholder value. Exposures are broken down by currency, by whether the currency is appreciating or depreciating and by whether exposures are symmetric or asymmetric. We find that derivatives are effective in reducing overall FC exposure but there is no evidence of value creation through the application of a program that identifies and targets only loss causing exposures. We also find that FC derivatives use has no significant effect on firm value in the overall sample and when the sample is broken down by exposure type and derivative product.

PublisherElsevier
JournalInternational Review of Financial Analysis
ISSN1057-5219
Publication dates
Print2012
Publication process dates
Deposited15 Mar 2012
Output statusPublished
Additional information

Corrected proof published online 11 April 2012. Print version in press.

Digital Object Identifier (DOI)https://doi.org/10.1016/j.irfa.2012.02.004
LanguageEnglish
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