On the determinants of speculation - a case for extended disclosures in corporate risk management

Arbeitspapier

We examine the determinants of corporate speculation and challenge the extant, conflicting evidence. Separating risk management (reducing currency-specific FX exposure) from speculation (increasing or holding currency-specific FX exposure constant), we provide unprecedented evidence that speculators are smaller, have more growth opportunities and possess lower internal resources than risk-managing firms. The refined granularity of our dataset stems from a unique regulatory environment, where a regulating authority recommends additional disclosures for FX risk management in excess of governing accounting standards. Our findings enable investors, henceforth, to identify speculation from public available sources, where our results substantiate the significance of such an extended reporting. Thus, this case of optional disclosures might serve as blueprint for further regulatory refinements in other settings.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Hohenheim Discussion Papers in Business, Economics and Social Sciences ; No. 15-2017

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Corporate Finance and Governance: Government Policy and Regulation ; Corporate Finance and Governance: Other
• Thema: Foreign Exchange ; Risk Management ; Selective Hedging ; Speculation ; Disclosure ; Reporting

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hecht, Andreas
• Ereignis: Veröffentlichung
• (wer): Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften
• (wo): Stuttgart
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/162992
• URN: urn:nbn:de:bsz:100-opus-13878
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ