Strathprints logo
Strathprints Home | Open Access | Browse | Search | User area | Copyright | Help | Library Home | SUPrimo

Exchange rate exposure, foreign currency derivatives and the introduction of the euro: French evidence

Faff, R. and Marshall, A.P. and Nygan, N. (2007) Exchange rate exposure, foreign currency derivatives and the introduction of the euro: French evidence. International Review of Economics and Finance, 16 (4). pp. 563-577. ISSN 1059-0560

[img]
Preview
PDF (strathprints008162.pdf)
strathprints008162.pdf

Download (294kB) | Preview

Abstract

We investigate the impact of the introduction of the Euro on exchange rate exposures for French corporations and examine the corporate use of foreign currency derivatives to hedge exchange rate exposure post-Euro. Our findings indicate that the introduction of the Euro is associated with both a reduction in the number of firms that have significant exchange rate exposure and the absolute size of exposure. Consistent with these reduced exposures, French firms use foreign currency derivatives less intensively. Furthermore, the use of foreign currency derivatives is found to be associated with lower exchange rate exposure but there is insufficient evidence that these instruments are more effective in the post-Euro environment.

Item type: Article
ID code: 8162
Keywords: exchange rate exposure, foreign currency derivatives, euro, France, exchange rates, finance, Accounting, Finance, Economics and Econometrics
Subjects: Social Sciences > Commerce > Accounting
Department: Strathclyde Business School > Accounting and Finance
Depositing user: Strathprints Administrator
Date Deposited: 07 Aug 2009 09:13
Last modified: 21 May 2015 10:30
Related URLs:
URI: http://strathprints.strath.ac.uk/id/eprint/8162

Actions (login required)

View Item View Item