Paper Title :Information Asymmetric, Exchange Rate Exposure, Derivatives: Evidence From Nonfinancial Firms

Author :Hui Hsuan Liu

Article Citation :Hui Hsuan Liu , (2017 ) " Information Asymmetric, Exchange Rate Exposure, Derivatives: Evidence From Nonfinancial Firms " , International Journal of Management and Applied Science (IJMAS) , pp. 82-88, Volume-3,Issue-6

Abstract : This article posits information asymmetric as an endogenous decision variable and analyzes its effect on this relation between exchange rate exposure and derivatives usage for the 3 years of time span from 2005 to 2007. Empirical results obtained from the equation model confirm the mutual interactions among exchange rate exposure, information asymmetric and derivatives usage. Exchange rate exposure is positively related to information asymmetric, the results also seem to vary with the firms’ level of information asymmetry. Derivatives usage is negatively associated with exchange rate exposure, which highlights the relevance of the information asymmetry hypotheses. It implies that the level of information asymmetry is adjusted to lower level by derivatives usage and allows firm to manage their exchange rate exposure. Keyword- Exchange Rate Exposure, Derivative Usage, Information Asymmetry

Type : Research paper

Published : Volume-3,Issue-6

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