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Digital Library

of the European Council for Modelling and Simulation

 

Title:

Determinants Of FX-Risk Management Evidence Of Hungary

Authors:

Barbara Doemoetoer, Erzsebet Kovacs

Published in:

 

 

 

(2017).ECMS 2017 Proceedings Edited by: Zita Zoltay Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics

European Council for Modeling and Simulation. doi:10.7148/2017

 

 

ISBN: 978-0-9932440-4-9/

ISBN: 978-0-9932440-5-6 (CD)

 

 

31st European Conference on Modelling and Simulation,

Budapest, Hungary, May 23rd – May 26th, 2017

 

Citation format:

Barbara Doemoetoer, Erzsebet Kovacs (2017). Determinants Of FX-Risk Management Evidence Of Hungary, ECMS 2017 Proceedings Edited by: Zita Zoltay Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics European Council for Modeling and Simulation. doi: 10.7148/2017-0113

DOI:

https://doi.org/10.7148/2017-0113

Abstract:

This paper investigates the motives of FX-risk management based on the changes of forward open positions of Hungarian corporations. We have found that Hungarian companies are significantly more exposed in short EUR forward position, than in EUR long one. Our linear regression model also showed that changing market conditions have an essentially higher impact on the EUR short positions. Our results confirmed that expectations are determining in the risk hedging decisions proving that financial risk management also has a speculative motive.

 

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