Advanced Search
MyIDEAS: Login to save this article or follow this journal

Derivative Instruments – Alternatives To Cover The Foreign Exchange Rate In The Case Of Import-Export Operations - Accounting Approach For Romania

Contents:

Author Info

  • CRISTINA SILVIA NISTOR

    ()
    (Department of Accounting, Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania)

  • CRINA IOANA FILIP

    ()
    (Department of Accounting, Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania)

  • ADELA DEACONU

    ()
    (Department of Accounting, Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania)

Abstract

The present dynamics of the economic environment imply the existence of permanent exchange between the world states’ economies. This fact is benefic for and desired by all the participants on the international economic transactions market, but it may also imply some risks. Thus, they must have the capacity, in the current conditions of financial evolutions and involutions, to protect themselves against the risk generated by foreign currency fluctuations in the case of international business. In this paper, our attention is focused on the possibilities of diminishing the foreign currency risk of the import-export operations, through usage of derivative instruments. We singularized the research for two components of the derivative instruments: futures and options. We added an accounting approach to the theoretical approach singularized for Romania. In order to be relevant, our study was build in parallel, by highlighting the effects of the foreign currency fluctuations in both the cases of using and not using derivative instruments. The research findings will demonstrate and sustain the fact that usage of derivative instruments is an admissible way to cover the risk generated by foreign currency fluctuations in the case of import-export operations.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_2_2008.pdf
File Function: Revised version, 2008
Download Restriction: no

Bibliographic Info

Article provided by Babes-Bolyai University, Faculty of Business in its journal JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA.

Volume (Year): (2008)
Issue (Month): ()
Pages:

as in new window
Handle: RePEc:bbn:journl:2008_2_8_nistor

Contact details of provider:
Postal: Str Horea nr. 7, Cluj-Napoca 400174
Phone: 004 0264 599170
Fax: 004 0264 590110
Email:
Web page: http://www.tbs.ubbcluj.ro/
More information through EDIRC

Related research

Keywords: derivative instruments; foreign currency risk; import-export; accounting approach; Romania;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
  2. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, 09.
  3. Mervyn King & Enrique Sentana & Sushil Wadhwani, 1990. "Volatiltiy and Links Between National Stock Markets," NBER Working Papers 3357, National Bureau of Economic Research, Inc.
  4. Torben G. Andersen & Tim Bollerslev & Francis X. Diebold & Heiko Ebens, 2000. "The Distribution of Stock Return Volatility," NBER Working Papers 7933, National Bureau of Economic Research, Inc.
  5. Charles C. Holt, 1962. "The Influence Of Growth Duration On Share Prices," Journal of Finance, American Finance Association, vol. 17(3), pages 465-475, 09.
  6. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-92, July.
  7. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
  8. William F. Sharpe, 1963. "A Simplified Model for Portfolio Analysis," Management Science, INFORMS, vol. 9(2), pages 277-293, January.
  9. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  10. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bbn:journl:2008_2_8_nistor. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cornelia Pop).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.