An Empirical Analysis of the Currency Hedging Behavior of North German SMEs

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F20%3A43918344" target="_blank" >RIV/62156489:43110/20:43918344 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.11118/ejobsat.2020.002" target="_blank" >http://dx.doi.org/10.11118/ejobsat.2020.002</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/ejobsat.2020.002" target="_blank" >10.11118/ejobsat.2020.002</a>

Result language

angličtina

Original language name

An Empirical Analysis of the Currency Hedging Behavior of North German SMEs

Original language description

In a globalized world, companies are able to sell their products or services abroad or purchase them abroad. This generates advantages due to the expansion of the business area creating a broader market but comes along with currency risks. This paper examines which factors influence German SMEs&apos; willingness to conduct foreign business, respectively to do transactions in foreign currencies. An empirical study researches how the currency risk in North German SMEs is valued and assessed. The analysis further identifies the differences in the use of foreign currencies of rural and urban SMEs and examines the reasons for the use of foreign currencies and currency management which lead to the use of currency hedging. With a sample size of 73 SMEs the study aims for a better understanding of the foreign activities of German SMEs and investigates the approach to the currency risk management for a better understanding of their needs. In general, the paper shows that the larger a company is, the more likely is the use of a currency management. A comparison of rural and urban SMEs in Northern Germany reveals, that urban ones are larger and therefore more likely to use currency hedging. Based on the research, the paper provides recommendations for SMEs with foreign sales.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

European Journal of Business Science and Technology

ISSN

2336-6494

e-ISSN

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Volume of the periodical

6

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

13

Pages from-to

53-65

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85099748750