IDEAS home Printed from https://ideas.repec.org/p/aap/wpaper/030.html
   My bibliography  Save this paper

Exchange Rate Exposure, Foreign Currency Debt and the Use of Derivatives: Evidence from Brazil

Author

Listed:
  • José Luiz Rossi Júnior

Abstract

This paper studies the exchange rate exposure and its determinants for a sample of non-financial Brazilian companies from 1996 to 2006. The results show that more than 25% of the firms in the sample have significant exchange rate exposure. Moreover, the results indicate that the number of firms exposed is higher in periods of crisis and under a fixed exchange rate regime. In addition, the results point out that although companies’ international activities, operational hedging and financial policies are important determinants of firms’ foreign exposure, the changes in companies’ exposure that took place when the country moved from a fixed to a floating exchange rate regime were mainly driven by changes in companies’ foreign currency borrowing and the use of derivatives that occurred in the period.

Suggested Citation

  • José Luiz Rossi Júnior, 2008. "Exchange Rate Exposure, Foreign Currency Debt and the Use of Derivatives: Evidence from Brazil," Business and Economics Working Papers 030, Unidade de Negocios e Economia, Insper.
    • Handle: RePEc:aap:wpaper:030
    as

    Download full text from publisher

    File URL: https://repositorio.insper.edu.br/server/api/core/bitstreams/21d74fa9-5b93-45be-8cee-ff9c07326a23/content?authentication-token=eyJhbGciOiJIUzI1NiJ9.eyJlaWQiOiIwNmRmYmM2MS1iNGQ1LTQ1YzgtYjlmNS1lYTk1ZDQwYTIwNzkiLCJzZyI6W10sImF1dGhlbnRpY2F0aW9uTWV0aG9kIjoicGFzc3dvcmQiLCJleHAiOjE3Mzk1NTM5ODN9._sqj3f6Vm9TSlDjL_-HiK9XkftNZMHDiFgLbhz54PhA
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aap:wpaper:030. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca Telles (email available below). General contact details of provider: https://edirc.repec.org/data/inspebr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.