The Impact of Family Ownership on Currency Speculation: The Case of Danish Non-Financial Firms
March 1, 2005
Gambling has attracted people since ancient times. This empirical paper surveys and investigates the extent of currency speculation in Danish non-financial firms. Such speculation is widespread and takes the form of selective hedging as well as speculation not related to the underlying business. The results show that if a person (often the founder or the descendants of the founder) is the largest shareholder in the firm, the extent of speculation is reduced. The results enhance our understanding of the reasons behind the corporate practice of currency speculation and are important to non-financial firms in other countries with open economies.
Number of Pages in PDF File: 25
Keywords: Currency speculation, risk management, ownership structure, corporate governance
JEL Classification: F31, G32, G34working papers series
Date posted: March 1, 2005
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