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Post by Sapphire Capital on Oct 16, 2008 22:23:09 GMT 4
UK Multinationals' Effective Use of Financial Currency-Hedge Techniques: Estimating and Explaining Foreign Exchange Exposure Using Bilateral Exchange Rates Stephen D. Makar University of Wisconsin - Oshkosh Stephen P. Huffman Journal of International Financial Management & Accounting, Vol. 19, Issue 3, pp. 219-235, Autumn 2008 Abstract: Using a unique dataset of recently available accounting disclosures, this study examines the relationship between UK multinationals' stock returns and changes in the principal exchange rate to which each firm is most exposed. We find more firms with significant foreign exchange exposure estimates using this firm-specific principal currency data, compared with those exposure estimates using the broad exchange rate index data prevalent in prior studies. The cross-sectional variations in such principal-currency exposure estimates are explained in relation to the financial currency-hedge techniques that each firm specifically identifies as being used to manage its currency risk. In particular, we provide evidence that firms effectively use foreign currency derivatives and foreign-denominated debt to reduce the currency risk associated with the bilateral exchange rate to which they are most exposed. This study is important to both the academic and the practitioner communities because it represents the first use of publicly available UK disclosures to improve the estimation and explanation of foreign exchange exposure. papers.ssrn.com/sol3/papers.cfm?abstract_id=1266943
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Post by ericasmith568 on Jun 3, 2010 8:07:26 GMT 4
Hi,
I want to make 1 guest article post in your site, only if you permit me. The post contains 350 words above and totally unique as they will be written by my content writers and the articles will be on the theme of your site.
Or else we can go for a simple link exchange. BUT I NEED ONLY FINANCE SITES/BLOGS WITH ANY PR.
Please contact me at my mail soon. In return, I will place your links in my different finance sites covering debt, mortgage, real estate, credit and insurance matters.
regards,
Erica Smith ericasmith568(at)gmail.com
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