We consider the effect of hedging with foreign currency derivatives on Brazilian firms in the period 1997 through 2004, a period that includes the Brazilian currency crisis of 1999. We find that, derivative users have valuations that are higher than non-user firms. Hedging with currency...

This dissertation studies the relationship between exchange rate regimes and financing decisions of corporations in small open economies with access to international capital markets.The first essay develops a model of the choice between local and foreign currency debt by capital-constrained...

What determined the corporate use of credit lines in the recent financial crisis? To address this question we hand-collect data on credit lines and interest rate hedging for a random sample of 600 COMPUSTAT firms. We document that drawdowns of credit lines had already increased in 2007, earlier...