Over the hedge: Getting past foreign exchange risk: The determinants of the decision to hedge by Philippine Export Firms in Metro Manila
Date of Publication
2008
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Applied Economics
College
Ramon V. Del Rosario College of Business
Department/Unit
Economics
Defense Panel Member
Myrna S. Austria
Marvin Raymond Castell
Ponciano S. Intal, Jr.
Abstract/Summary
Accompanying the increasing trend of economic integration and globalization is the growing significance of the increased levels in international trade. However, the values of currencies on which facilitation of transactions on a global level depend on have continuously been volatile and subject to fluctuations. The Philippine peso has certainly not been an exception to this trend, and key economic players like international traders (i.e., exporters especially during a peso appreciation) are affected. In this light, hedging as a recently-introduced risk management facility becomes an important tool for protection. This paper, one of the first of its kind, investigates on the possible significant determinants of the decision to hedge by Philippine export firms in Metro Manila by using primary data obtained from surveys. Data analysis is comprehensive and exhaustive such that it implements three methods: (1) regression analysis (using analysis of variance model, analysis of covariance model, and probit model), (2) cross-tabulations, and (3) chi-square test for independence. Results showed that awareness of the existence of a hedging facility and the perception of a peso appreciation will positively drive an exporters probability to hedge by 58.89% and 38.78% respectively. Given the newness of the facility and the current lack of intensive study for it in the Philippine setting, recommendations revolve around the main ideas of re-educating exporters to give them knowledge more than just awareness, re-designing the facility to suit consumer needs, and lastly, re-studying hedging in general with the possibility of applying this research in a much wider scale.
Abstract Format
html
Language
English
Format
Accession Number
TU16674
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
2v. 28 cm. + + 1 computer optical disc.
Recommended Citation
Aguado, J. O., Co, H. C., & Del Rosario, K. P. (2008). Over the hedge: Getting past foreign exchange risk: The determinants of the decision to hedge by Philippine Export Firms in Metro Manila. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/11747
