Benefits of Hedging – A closer look at currency hedging practices deployed by listed German non-financial companies
- Previous research in the field of currency hedging and risk management has shown
that corporate managers are not only hedging currency risk to ensure financing from
internal funds but are also deploying selective hedging strategies seemingly trying to
beat the market. The secondary research of this bachelor’s thesis shows that selective
hedging is related to firm value scales and argues that FX options and currency swaps
are better suited than FX forwards in a selective hedging strategy. The primary
research in the form of an empirical analysis of 134 listed German non-financial
companies finds that the use of FX options and currency swaps is related to firm value
scales and more frequent in high value firms. This indicates that many high value firms
could be deploying selective hedging strategies with the use of internal market
projections. Similar research on the German public sector has not been observed and
the results suggest the need to improve transparency in company reports and hedge
accounting regulations.
MetadatenAuthor: | Altan Sarisin |
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URN: | urn:nbn:de:kobv:b721-opus4-1126 |
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Document Type: | Bachelor Thesis |
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Language: | German |
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Date of Publication (online): | 2013/12/23 |
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Publishing Institution: | Hochschulbibliothek HWR Berlin |
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Granting Institution: | Hochschule für Wirtschaft und Recht Berlin |
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Date of final exam: | 2013/07/11 |
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Release Date: | 2013/12/23 |
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Page Number: | 63 |
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