Otero González, Luis
[Verfasser:in]
;
Vivel Búa, Milagros
[Sonstige Person, Familie und Körperschaft];
Fernandez Lopez, Sara
[Sonstige Person, Familie und Körperschaft];
Rodríguez Sandías, Alfonso
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2007 erstellt
Beschreibung:
The present paper analyses the reasons why Spanish quoted firms use derivatives to hedge against exchange-rate risk. Through the application of a Tobit model, the obtained results show that the variables related to the creation of value and the existence of scale economies are the main factors for hedging. In fact, the size, market to book ratio, and liquidity have been significant. Also, it has been obtained that the main variable that determines the volume of hedging is the level of exchange exposition. With regarding to foreign debt, we found that the companies use it as a complementary hedging instrument. Moreover, its use and quantity are explained by the volume of foreign sales only