Information value, export and hedging

Arbeitspapier

The paper analyzes the interactions between the precision of information, trade and welfare within a decision framework of an exporting firm. Information in a financial market is described in terms of a publicly observable signal. With higher transparency, the signal conveys more precise information about the random foreign exchange rate. More precise information about exchange rate changes has ambiguous effects on trade and welfare which depend critically on technology of the firm and the degree of risk aversion.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Dresden Discussion Paper Series in Economics ; No. 03/11

Classification and Topics

• Classification: Wirtschaft ; Neoclassical Models of Trade ; Multinational Firms; International Business ; Information and Market Efficiency; Event Studies; Insider Trading ; International Financial Markets
• Subject: exchange rate risk ; trade ; futures market ; market transparency ; value of information

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Broll, Udo ; Eckwert, Bernhard
• Event: Veröffentlichung
• (who): Technische Universität Dresden, Fakultät Wirtschaftswissenschaften
• (where): Dresden
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48166
• Last update: 10.03.2025, 11:44 AM CET