英语论文网

留学生硕士论文 英国论文 日语论文 澳洲论文 Turnitin剽窃检测 英语论文发表 留学中国 欧美文学特区 论文寄售中心 论文翻译中心

Bussiness ManagementMBAstrategyHuman ResourceMarketingHospitalityE-commerceInternational Tradingproject managementmedia managementLogisticsFinanceAccountingadvertisingLawBusiness LawEducationEconomicsBusiness Reportbusiness planresearch proposal

英语论文题目英语教学英语论文商务英语英语论文格式商务英语翻译广告英语商务英语商务英语教学英语翻译论文英美文学英语语言学文化交流中西方文化差异英语论文范文英语论文开题报告初中英语教学英语论文文献综述英语论文参考文献

ResumeRecommendation LetterMotivation LetterPSapplication letterMBA essayBusiness Letteradmission letter Offer letter

澳大利亚论文英国论文加拿大论文芬兰论文瑞典论文澳洲论文新西兰论文法国论文香港论文挪威论文美国论文泰国论文马来西亚论文台湾论文新加坡论文荷兰论文南非论文西班牙论文爱尔兰论文

小学英语教学初中英语教学英语语法高中英语教学大学英语教学听力口语英语阅读英语词汇学英语素质教育英语教育毕业英语教学法

英语论文开题报告英语毕业论文写作指导英语论文写作笔记handbook英语论文提纲英语论文参考文献英语论文文献综述Research Proposal代写留学论文代写留学作业代写Essay论文英语摘要英语论文任务书英语论文格式专业名词turnitin抄袭检查

temcet听力雅思考试托福考试GMATGRE职称英语理工卫生职称英语综合职称英语职称英语

经贸英语论文题目旅游英语论文题目大学英语论文题目中学英语论文题目小学英语论文题目英语文学论文题目英语教学论文题目英语语言学论文题目委婉语论文题目商务英语论文题目最新英语论文题目英语翻译论文题目英语跨文化论文题目

日本文学日本语言学商务日语日本历史日本经济怎样写日语论文日语论文写作格式日语教学日本社会文化日语开题报告日语论文选题

职称英语理工完形填空历年试题模拟试题补全短文概括大意词汇指导阅读理解例题习题卫生职称英语词汇指导完形填空概括大意历年试题阅读理解补全短文模拟试题例题习题综合职称英语完形填空历年试题模拟试题例题习题词汇指导阅读理解补全短文概括大意

商务英语翻译论文广告英语商务英语商务英语教学

无忧论文网

联系方式

International trade acts :how to avoid the risks

论文作者:anter论文属性:职称论文 Scholarship Papers登出时间:2010-11-29编辑:anterran点击率:6520

论文字数:3012论文编号:org201011291301258400语种:英语论文 English地区:中国价格:免费论文

附件:20101129130125967.docx

关键词:International tradeactsfluctuationsexchange rate

Introduction
International trade acts an important role in the today’s human society. Firms have had to www.51lunwen.orgface such a problem which is how to avoid the risks caused by the fluctuations of exchange rate. Currency hedging can eliminate the FX risk. However, whether currency hedging adds firm market value, the academic question has dispute until now. In this essay, it is going to provides my arguments regarding the statement which is ‘currency hedging adds firm market value’, and prove it with academic research. After that, some strategies of managing the currency exposure will be discussed.

Currency hedging adds firm market value
The writer of this essay is for currency hedging. Multinational companies often trade between countries. It takes time for exporters (importers) to receive (pay) money. Because the exchange rates are keep changing all the time. Multinational Corporations do not know the precise figures they are going to pay or receive. This variable situation is called uncertainty. Currency hedging usually eliminates the currency risk.

Firstly, airlines always are sensitive to the exchange rate of currency which they use to buy the oil. In the airlines industry, because the fuel price is highly correlated to the investment opportunities, benefit of hedging with relation to oil price would be the reduction in underinvestment costs which company refusing to invest in the low-risk assets. (Carter et al, 2006) What is more, Carter also found that market value increased more than 5%.

Secondly, from the perspective of the Modigliani-Miller theorem, hedging does not change the value of the firm, if hedging merely reduces the idiosyncratic risk not to lower the firm’ taxes. (Nguyen, 2009) However, in a progressive taxation system, hedging might reduce the expected payment of taxes, increasing firm's after-tax income. (Smith & Stultz, 1985) For example, the interest payment from money market hedging can reduce tax payment. Obviously, there is a positive impact on firm value.

Thirdly, in the real world idiosyncratic risk within a firm can reduce its value. A company face bankruptcy will pay a great deal of money on lawyer, accountants, and ‘fire-selling’ assets. (Nguyen, 2009) But if the company can avoid such situation by reducing the idiosyncratic risk of the cash flow, the company could get benefit from hedging. Firms can manage exchange risk by taking offsetting positions to reduce the uncertainty of future cash flows. From the perspective of accounting, a stable cash flow is the most important thing to the company, because it is about surviving. The more stable the cash flow the company has, the longer period of time the company might exist. Smith and Stultz (1985) showed that there may be some benefits for the companies by reducing the volatility of their cash flow, the existence of costs of financial distress which is bankruptcy costs. Hedging would reduce the likelihood of paying these costs, which would add value to the firm. In January 2000, Air Products faced a strong fluctuation in the USD/GBP exchange rate in previous months. ‘We still fell we did the right thing in hedging the transaction. When you do M&A you worry about having the economics of a deal change because of currency movements, and we are not in the business of making currency bets.’ says Paul Huck, Chief financial officer of Air Products. (Arnold, 2008)

People might think that a firm without internatio论文英语论文网提供整理,提供论文代写英语论文代写代写论文代写英语论文代写留学生论文代写英文论文留学生论文代写相关核心关键词搜索。

共 1/4 页首页上一页1234下一页尾页

英国英国 澳大利亚澳大利亚 美国美国 加拿大加拿大 新西兰新西兰 新加坡新加坡 香港香港 日本日本 韩国韩国 法国法国 德国德国 爱尔兰爱尔兰 瑞士瑞士 荷兰荷兰 俄罗斯俄罗斯 西班牙西班牙 马来西亚马来西亚 南非南非

   Europe (24-hours)
   EN:13917206902
   china (24-hours)
   CN:13917206902
在线客服团队
    全天候24小时在线客服
      QQ:949925041 
  

微信公众订阅号