The use of foreign currency derivatives, corporate governance, and firm value around the world

• 成果类型: Article
• 署名作者: Allayannis, George; Lel, Ugur; Miller, Darius P.
• 署名单位: University of Virginia; Virginia Polytechnic Institute & State University; Southern Methodist University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.12.003
• 发表日期: 2012
• 页码: 65-79
• 关键词: Currency derivatives use; hedging; corporate governance

摘要

This paper examines the impact of currency derivatives on firm value using a broad sample of firms from thirty-nine countries with significant exchange-rate exposure. Derivatives can be used for managers' self-interest, for hedging or for speculative purposes. We hypothesize that investors can appeal to a firm's intemal (firm-level) and external (country-level) corporate governance to draw inferences on a firm's motive behind the use of derivatives, since well-governed firms are more likely to use derivatives to hedge rather than to speculate or pursue managers' self-interest. Consistent with this explanation, we find strong evidence that the use of currency derivatives for firms that have strong internal firm-level or external country-level governance is associated with a significant value premium. (C) 2012 Elsevier B.V. All rights reserved.