The Use of Foreign Currency Derivatives and Firm Market Value
This article examines the use of foreign currency derivatives (FCDs) in a sample of 720 large U.S. nonfinancial firms between 1990 and 1995 and its potential impact on firm value. Using Tobin’s |$Q$| as a proxy for firm value, we find a positive relation between firm value and…
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George (robot) · Currency · Value (mathematics) · Management · Library science · Economics · Business · Art
# The Use of Foreign Currency Derivatives and Firm Market Value
> OpenAlex Metadata Hub · https://openalex.org/W3122250801
## Bibliographic
- **DOI:** 10.1093/rfs/14.1.243
- **Year:** 2001
- **Citations:** 1002
- **Open Access:** No (closed)
- **License:** —
- **Source:** https://doi.org/10.1093/rfs/14.1.243
## Authors
- George Allayannis
- James Weston
## Abstract
This article examines the use of foreign currency derivatives (FCDs) in a sample of 720 large U.S. nonfinancial firms between 1990 and 1995 and its potential impact on firm value. Using Tobin’s |$Q$| as a proxy for firm value, we find a positive relation between firm value and the use of FCDs. The hedging premium is statistically and economically significant for firms with exposure to exchange rates and is on average 4.87% of firm value. We also find some evidence consistent with the hypothesis that hedging causes an increase in firm value.
## Keywords
George (robot), Currency, Value (mathematics), Management, Library science, Economics, Business, Art, Art history, Monetary economics, Computer science
## Concepts
- George (robot)
- Currency
- Value (mathematics)
- Management
- Library science
- Economics
- Business
- Art
- Art history
- Monetary economics
- Computer science
- Machine learning
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*Metadata only — full text not imported unless Open Access license permits.*
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Tóm lược học thuật (đã diễn giải): This article examines the use of foreign currency derivatives (FCDs) in a sample of 720 large U.S. nonfinancial firms between 1990 and 1995 and its potential impact on firm value. Using Tobin’s |$Q$| as a proxy for firm value, we find a positive relation between firm value and the use of FCDs. The hedging premium is statistically and economically significant for firms with exposure to exchange rates and is on average 4.87% of firm value. We also find some evidence consistent with the hypothesis that hedging causes an increase in firm value.
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Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.
1. This article examines the use of foreign currency derivatives (FCDs) in a sample of 720 large U.S.
2. nonfinancial firms between 1990 and 1995 and its potential impact on firm value.
3. Using Tobin’s |$Q$| as a proxy for firm value, we find a positive relation between firm value and the use of FCDs.
4. The hedging premium is statistically and economically significant for firms with exposure to exchange rates and is on average 4.87% of firm value.
5. We also find some evidence consistent with the hypothesis that hedging causes an increase in firm value.
Trader nên nối luận điểm policy/lãi suất trong tài liệu với bias trung hạn của USD và các cặp major — đặc biệt quanh FOMC / dữ liệu CPI.
Với XAUUSD: kỳ vọng cắt lãi / USD yếu thường hỗ trợ vàng; hawkish surprise thường gây áp lực giảm — dùng khung này để đọc reaction sau tin, không đoán trước.
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Áp dụng vào FX: theo dõi transmission từ theory (pricing, carry, balance-sheet) sang hành vi giá trên M15–H4 sau các event thanh khoản cao.
Góc Forex: đối chiếu kết luận bài với hành giá gần nhất và lịch tin impact cao trước khi vào lệnh.
Góc Gold (XAUUSD): đối chiếu kết luận bài với hành giá gần nhất và lịch tin impact cao trước khi vào lệnh.
Trading: rút 1 bias hoặc 1 setup hypothesis từ Key Takeaways, test trên demo/journal trước khi live.
Risk: chuyển insight thành rule (max risk/trade, pause quanh tin, correlation USD–vàng) và gắn vào playbook.
