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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

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    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
    Related URLs:
    Depositing user: Strathprints Administrator
    Date Deposited: 07 Aug 2009 10:13
    Last modified: 04 Sep 2014 23:59
    URI: http://strathprints.strath.ac.uk/id/eprint/8162

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