Clark, P.B. and Macdonald, R. (2004) Filtering the BEER: A permanent and transitory decomposition. Global Finance Journal, 15(1), pp. 29-56. (doi: 10.1016/j.gfj.2003.10.005)
Full text not currently available from Enlighten.
Publisher's URL: http://dx.doi.org/10.1016/j.gfj.2003.10.006
Abstract
This study finds that a sample of U.S.-based multinational corporations (MNCs) with heavy involvement in Europe is less frequently exposed to European currency risk than to non-European currency risk. Furthermore, 60% of the time, the MNCs without European exposure are found to have non-European exposure. These results are likely due to scale economies in foreign exchange exposure hedging that recently has been suggested in the literature. To the extent that economies of scale in hedging exist, it is likely that MNCs can achieve these economies in areas where they conduct substantial business activities, thus are more able to justify the necessary hedging programs.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | MacDonald, Professor Ronald |
| Authors: | Clark, P.B., and Macdonald, R. |
| College/School: | College of Social Sciences > Adam Smith Business School > Economics |
| Journal Name: | Global Finance Journal |
| ISSN: | 1044-0283 |
| ISSN (Online): | 1873-5665 |
| Published Online: | 22 April 2004 |
University Staff: Request a correction | Enlighten Editors: Update this record
Deposit and Record Details
Deposit and Record Details