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Erklärungsfaktoren für den Einsatz von Währungsderivaten bei deutschen Unternehmen — eine empirische Logit-Analyse

Author

Listed:
  • Oliver Russ

    (Stern Stewart & Co.)

  • Günther Gebhardt

    (Johann Wolfgang Goethe-Universität Frankfurt am Main)

Abstract

Summary We analyse the determinants of exchange risk management with derivative instruments by German nonfinancial companies testing hypotheses derived from financial theory. Our results differ from those of studies using data from Anglo-Saxon countries: Size related cost advantages, bankruptcy costs or costs of underinvestment because of an inadequate level of internal financing as suggested by Froot/Scharfstein/Stein (1993) turn out not to be significant. Variables that capture managerial interests or the extent of foreign exchange risk exposure are significant determinants of the use of foreign exchange derivatives. Further we find that closely held companies whose shareholders are less diversified and therefore should hedge more in fact use significantly less often foreign exchange derivatives.

Suggested Citation

  • Oliver Russ & Günther Gebhardt, 2005. "Erklärungsfaktoren für den Einsatz von Währungsderivaten bei deutschen Unternehmen — eine empirische Logit-Analyse," Schmalenbach Journal of Business Research, Springer, vol. 57(7), pages 565-594, November.
    • Handle: RePEc:spr:sjobre:v:57:y:2005:i:7:d:10.1007_bf03377351
    DOI: 10.1007/BF03377351
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    References listed on IDEAS

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    More about this item

    Keywords

    F23; F37; G39;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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