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.

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Metadaten
Author:Altan Sarisin
URN:urn:nbn:de:kobv:b721-opus4-1126
Document Type:Bachelor Thesis
Language:German
Date of Publication (online):2013/12/23
Publishing Institution:Hochschulbibliothek HWR Berlin
Granting Institution:Hochschule für Wirtschaft und Recht Berlin
Date of final exam:2013/07/11
Release Date:2013/12/23
Page Number:63