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Interest Rate Risk and Foreign Exchange Risk Management Practice in Russian Non-Financial Companies

Author

Listed:
  • Dmitrieva, M.

    (Finance University under the Government of the Russian Federation, Moscow, Russia)

Abstract

It has become essential to effectively manage the interest rate and foreign exchange risks due to their increased importance for the Russian non-financial companies. No complex investigation on risk management practice has ever been done in Russia, as compared to the foreign countries. The author analyzes the results of a survey of interest rate and foreign exchange risk management in the Russian non-financial companies. The survey covers the approaches to risk identification, its valuation and management with the emphasis on financial hedging and the types of derivatives used. The results could be helpful for companies' top-management as a guideline for a comparative analysis of their company's position in a market and help modify their risk management practices. Moreover, the results could be used by analytics and researches for the further investigation.

Suggested Citation

  • Dmitrieva, M., 2016. "Interest Rate Risk and Foreign Exchange Risk Management Practice in Russian Non-Financial Companies," Journal of the New Economic Association, New Economic Association, vol. 30(2), pages 129-159.
    • Handle: RePEc:nea:journl:y:2016:i:30:p:129-159
    as

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    References listed on IDEAS

    as
    1. Bartram, Söhnke M., 2008. "What lies beneath: Foreign exchange rate exposure, hedging and cash flows," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1508-1521, August.
    2. Söhnke Bartram, 2002. "The Interest Rate Exposure of Nonfinancial Corporations," Review of Finance, European Finance Association, vol. 6(1), pages 101-125.
    3. Gordon M. Bodnar & Gregory S. Hayt & Richard C. Marston, 1998. "1998 Wharton Survey of Financial Risk Management by US Non-Financial Firms," Financial Management, Financial Management Association, vol. 27(4), Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    risk management; hedging; non-financial companies; Russia; interest rate risk; foreign exchange risk;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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