Foreign debt and financial hedging : evidence from Australia
Data(s) |
01/01/2006
|
---|---|
Resumo |
We investigate the role of foreign currency denominated debt (FCDD) as a natural hedging instrument using a sample of Australian firms. Our results show that the incidence of foreign debt use among industrial sector firms is associated with a lower level of exchange rate exposure. The practice of issuing foreign debt within the industrial sector also conforms better to the hypothesis that firms do so to satisfy a demand for hedging. In contrast, although the incidence of foreign debt issues is higher in the resource/mining sector, the underlying motive for such arises from a demand for financing.<br /><br /><br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Elsevier Inc. |
Relação |
http://dro.deakin.edu.au/eserv/DU:30004327/n20070475.pdf http://dx.doi.org/10.1016/j.iref.2004.03.006 |
Direitos |
2004 Elsevier Inc. |
Palavras-Chave | #foreign debt #financial hedging #foreign currency exposure |
Tipo |
Journal Article |