Foreign Currency Derivatives and Their Impact on Firm Value - A study on Swedish Non-Financial Firms

Abstract: This paper empirically examines the relationship between firm value and the usage of currency derivatives for 85 non-financial Swedish firms listed on Stockholm Stock Exchange. The sample includes firms operating in a wide range of industries and with different sizes. The time period for the data is from 2005 to 2010. There is no proof of an existing relationship between currency derivative usage and firm value. The most significant result indicates that a negative correlation between leverage and firm value exists.