Exchange Rate Exposure, Hedging, and the Use of Foreign Currency Derivatives

By George Allayannis, Eli Ofek. 2001

932 citations recorded by the source corpus.

Subfields: Accounting, Safety, Risk, Reliability and Quality

View Paper: https://www.semanticscholar.org/paper/4c3b4ea8b0e8f11ffab30c0d05e72b08ac37a5e2

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Citations in the corpus

How Much Do Firms Hedge with Derivatives (2003, neutral): “, Nance, Smith and Smithson, 1993; Mian, 1996; Geczy, Minton, and Schrand, 1997; Guay, 1999; Allayannis and Ofek, 2001; Knopf, Nam, and Thornton, 2002). As Smithson (1996) and Graham and Rogers (1999) note, these studies find conflicting evidence about the extent to which hedging theories explain co”
Resolving the Exposure Puzzle: The Many Facets of Exchange Rate Exposure (2010, background): “Allayannis and Ofek (2001), Wong (2000), Simkins and Laux (1996), and Hagelin and Pramborg (2004) report significant negative associations between foreign exchange exposures and the use of financial hedges. Nain (2004) shows that an unhedged firm’s foreign exchange exposure increases with the extent”
Does Fuel Hedging Make Economic Sense? The Case of the US Airline Industry (2002, neutral): “1 Allayannis and Ofek (2001), Berkman and Bradbury (1996), Dolde (1995), Gay and Nam (1998), Géczy, Minton, and Schrand (1997), Graham and Rogers (2002), Haushalter (2000), Mian (1996), Nance, Smith, and Smithson (1993), Rogers (2002), Schrand and Unal (1998), and Tufano (1996) are many of the publi”
Does Hedging Affect Firm Value? Evidence from the US Airline Industry (2006, neutral): “Allayannis and Ofek (2001) , Berkman and Bradbury (1996), Dolde (1995), Gay and Nam (1998), Geczy, Minton, and Schrand (1997), Graham and Rogers (2002), Haushalter (2000), Mian (1996), Nance, Smith, and Smithson (1993), Rogers (2002), Schrand and Unal (1998), and Tufano (1996), are many of the publi”
The Effects of Derivatives on Firm Risk and Value (2011, neutral): “Allayannis and Ofek (2001) relate derivatives use to the foreign exchange rate exposure of a sample of 378 U.S. non-financial firms and find that the use of derivatives significantly reduces the exposure of the sample firms to exchange rate risk. In work on mutual funds, Koski and Pontiff (1999) sho”
Crossing the Lines: The Conditional Relation between Exchange Rate Exposure and Stock Returns in Emerging and Developed Markets (2012, neutral): “…papers show that corporate hedging reduces the sensitivity of stock returns to foreign exchange rate risk e.g., the use of financial hedging (Allayannis and Ofek, 2001), or operational hedging (e.g. Cater Pantzalis and Simkins, 2004; Kim, Mathur and Nam, 2004; Allayannis, Ihrig and Weston,…”
Debt Capacity, Cost of Debt and Corporate Insurance (2008, positive): “Allayannis and Ofek (2001) demonstrate that using derivatives helps reduce hedgers’ currency exposure.”
UvA-DARE ( Digital Academic Repository ) Who times the foreign exchange market ? Corporate speculation and CEO characteristics (2015, background): “These findings hold when we control for proxies of operational hedging (Allayannis et al., 2001) and when we use alternative measures of currency exposures, or different normalization of derivatives use.”
Emerging market exchange rate exposure (2008, neutral): “In terms of methodology, many studies, including the works of Allayannis and Ofek (2001), Bodnar and Gentry (1993), Jorion (1990, 1991), and Williamson (2001), measure exchange rate exposure using the domestic market index as a control variable.”
Measuring the economic importance of exchange rate exposure (2006, background): “5 A recent study by Allayannis and Ofek (2001) shows that the use of foreign currency derivatives does reduce exposure.”
The Impact of Enterprise Risk Management on the Marginal Cost of Reducing Risk: Evidence from the Insurance Industry (2014, neutral): “Consistent with the argument of economies of scale, larger firms are more likely to adopt ERM (Géczy et al., 1997; Allayannis and Ofek, 2001).”
Estimating Exchange Rate Exposures: Issues in Model Structure (2003, background): “Equation (2) is generally preferred by researchers (see, e.g., Allayannis, 1997a, 1997b; Allayannis and Ofek, 2001; Bodnar and Gentry,1993; Choi and Prasad, 1995; Jorion, 1990, 1991; Williamson, 2001; Wong, 2000).8 It is important to note, and often overlooked or undermentioned in the empirical…”
Gold as a hedge against the dollar (2005, background): “An early examination of these can be found in Carse et al. (1980); a recent study of hedging dollar risk using derivatives is Allayannis and Ofek (2001).”