Do firms hedge with foreign currency derivatives for employees?

• 成果类型: Article
• 署名作者: Huang, Pinghsun; Huang, Hsin-Yi; Zhang, Yan
• 署名单位: National Cheng Kung University; National Taichung University of Science & Technology; State University of New York (SUNY) System; Binghamton University, SUNY
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.01.008
• 发表日期: 2019
• 页码: 418-440
• 关键词: Currency hedging; Employee treatment; human capital

摘要

Using a sample of 3004 US firm-years with foreign sales, we provide the first evidence that a firm's employee treatment score is an important determinant of its fraction of foreign sales hedged with currency-based derivatives. The positive relation between employee treatment rating and currency hedging activity is driven by firms operating in competitive industries, businesses with relatively unique products or assets, and companies adopting aggressive business strategies. These results suggest that firms with foreign sales tend to factor employee benefits in their currency hedging policies when their acquisition, development, and retention of human capital are especially costly or highly valued. (C) 2019 Published by Elsevier B.V.