Corporate financial policies and the exchange rate regime: Evidence from Brazil
AbstractThis paper analyzes the relationship between companies' financial policies and the exchange rate regime for a sample of non-financial Brazilian companies from 1996 to 2006. The adoption of a floating exchange rate regime is shown to improve the match between the currency composition of companies' assets and liabilities. The paper also shows that this reduction in companies' currency mismatches is more pronounced for companies in the highest quantile of foreign exposure; therefore the results confirm that the exchange rate regime plays an important role in the determination of companies' foreign vulnerability.
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Bibliographic InfoArticle provided by Elsevier in its journal Emerging Markets Review.
Volume (Year): 10 (2009)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/620356
Debt composition Hedging Use of derivatives Exposure Exchange rate regime;
Other versions of this item:
- José Luiz Rossi Júnior, 2008. "Corporate Financial Policies and the Exchange Rate Regime: Evidence from Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807210957020, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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