Résumés
Abstract
We investigate the impact of foreign currency debt on firm performance for a sample of non-financial French firms studied over the period 2002 to 2012. As foreign currency debt is both a financing and hedging instrument against foreign exchange risk, we examine whether its impact results from an optimal hedging policy or a capital structure policy. We find that foreign currency debt and domestic debt have the same positive effect before the crisis and negative impact after. The capital structure theory or the hedging theory can explain this result. During the crisis period, only corporate hedging theory explains the impact of foreign debt.
Keywords:
- Foreign Currency Derivatives,
- Foreign Currency Debt,
- Foreign Currency Hedging,
- Firm performance
Résumé
Nous étudions l'impact de la dette en devises sur la performance d’un échantillon d'entreprises non-financières françaises sur la période 2002-2012. Compte tenu de la double nature de la dette en devises, nous vérifions si cet impact résulte d'une politique de couverture ou de structure du capital. Nous constatons que la dette en devises et la dette domestique ont le même effet positif avant et négatif après la crise de 2008. Les théories de la structure du capital et de la couverture expliquent ce résultat. Pendant la crise, l’impact de la dette en devises est expliqué uniquement par la théorie de la couverture.
Mots-clés :
- Produits dérivés,
- Dette en devises,
- Couverture du risque de change,
- Performance de l’entreprise
Resumen
Estudiamos el impacto de la deuda en divisa sobre el desempeño de una muestra de empresas francesas no financieras durante el período 2002-2012. Dada la naturaleza dual de la deuda en divisa, verificamos si este impacto es el resultado de una política de cobertura o de estructura de capital. Observamos que la deuda en divisa y la deuda interna tienen el mismo efecto positivo antes de la crisis de 2008 y después negativo. Las teorías de estructura de capital y cobertura explican este resultado. Durante la crisis, el impacto de la deuda en divisa se explica únicamente por la teoría de la cobertura cambiaria.
Palabras clave:
- Productos derivados,
- Deuda en divisa,
- Cobertura del riesgo de cambio,
- Desempeño de las empresas
Parties annexes
Bibliography
- Aabo, T. (2006), “The Importance of Corporate Foreign Debt in Managing Exchange Rate Exposures in Non-Financial Companies”, European Financial Management, Vol. 12, N° 4, p. 633-649.
- Allayannis, G., Brown, G.W., and Klapper, L.F. (2003), “Capital Structure and Financial Risk: Evidence from Foreign Debt Use in East Asia,” Journal of Finance, Vol. 58, N° 6, pp. 2667-2710.
- Allayannis, G. and Weston, J. (2001), “The Use of Foreign Currency Derivatives and Firm Market Value,” Review of Financial Studies, Vol. 14, pp. 243-276.
- Bartram, S., Brown, G.W., and Fehle, F.R. (2009), “International Evidence on Financial Derivatives Usage,” Financial Management, Vol. 38, N° 1, pp. 185-206.
- Belghitar, Y., Clark, E., and Mefteh-Wali, S. (2013), “Foreign Currency Derivatives Use and Shareholder Value,” International Review of Financial Analysis, Vol. 29, pp. 283-293.
- BenKhediri, K. (2010), “Do Investors Really Value Derivatives Use? Empirical Evidence from France,” Journal of Risk Finance, Vol. 11, January, pp. 62-74.
- BenKhediri, K., and Folus, D. (2010), “Does Hedging Increase Firm Value? Evidence from French Firms,” Applied Economics Letters, Vol. 17, N° 10, pp. 995-998.
- Bessembinder, H., (1991), “Forward Contracts and Firm Value: Investment Incentive and Contracting Effects,” Journal of Financial and Quantitative Analysis, Vol. 26, pp. 519-532.
- Bhattacharya, S. (1979), “Imperfect Information, Dividend Policy and the “Bird-in-Hand” fallacy”. The Bell Journal of Economics, Vol. 10, pp. 259-270
- Clark, E. and Judge, A. (2009), “Foreign Currency Derivatives versus Foreign Currency Debt and the Hedging Premium,” European Financial Management, Vol. 15, N° 3, pp. 606-642.
- Clark, E. and Mefteh, S. (2010). “Foreign Currency Derivatives Use, Firm Value and the Effect of the Exposure Profile: Evidence from France,” International Journal of Business, Vol. 15, N° 2, pp. 183-196.
- Coase, R. (1937), “The Nature of the Firm.” Economica, Vol. 16, N° 4, pp. 386-405.
- Dunning, J. (1973), “The Determinants of International Product.” Oxford Economic Papers, Vol. 25 N° 3, pp. 289-336.
- Fauver, L. and Naranjo, A. (2010) “Derivative Usage and Firm Value: The Influence of Agency Costs and Monitoring Problems,” Journal of Corporate Finance, Vol. 16, pp. 719-735.
- Froot, K.A., Scharfstein, D.S., and Stein, J.C. (1993), “Risk Management: Coordinating Corporate Investment and Financing Policies,” Journal Finance, Vol. 48, pp. 1629-1658.
- Harvey, C.R. and Roper, A. (1999), “The Asian Bet,” in: Harwood, A., Litan, R.E., and Pomerleano, M. (Eds.), The Crisis in Emerging Financial Markets. Brookings Institution Press, Washington, DC, pp. 29-115.
- Hausman, J.A. (1978), “Specification Tests in Econometrics,” Econometrica., Vol. 46, No. 6, 1251-1271.
- Jensen, M. (1986), “Agency Costs of Free Cash-Flow, Corporate Finance and Takeovers,” American Economic Review, Vol. 76, pp. 323-329.
- Jin, Y. and Jorion, P. (2006). “Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers,” Journal of Finance, Vol. 61, N° 2, pp. 893-919.
- Keloharju, M. and Niskanen, M. (2001), “Why Do Firms Raise Foreign Currency Denominated Debt? Evidence from Finland,” European Financial Management, Vol. 7, N° 4, pp. 481-496.
- Lewellen, W.G. and Badrinath, S.G. (1997), “On the Measurement of Tobin’s Q,” Journal of Financial Economics, Vol. 44, pp. 7-122.
- Myers, S. and Majulf, N. (1984), “Corporate financing and investment decisions when firms have information that investors do not have”, Journal of Financial Economics, Vol. 13, N° 2, pp. 187-221.
- Mefteh-Wali, S. and Rigobert, M.J. (2013), “Les Facteurs Déterminants de l’Endettement en Devises des Entreprises Françaises,” Finance Contrôle Stratégie, Vol. 16, N° 4, https://fcs.revues.org/1395
- Miller, M. (1977), “Debt and Taxes,” Journal of Finance, Vol. 32, pp. 261-276.
- Modigliani, F. and Miller, M. (1958), “The Cost of Capital, Corporation Finance, and the Theory of Investment,” American Economic Review, Vol. 48, pp. 261-297.
- Mueller, D. (1987). The Corporation: Growth, Diversification and Mergers. Harwood, Chur, Switzerland.
- Peltzman, S. (1977), “The Gains and Losses from Industrial Concentration,” Journal of Law and Economics, Vol. 20, pp. 229-263.
- Perfect, S. and Wiles, K. (1994), “Alternative Constructions of Tobin’s Q: An Empirical Comparison,” Journal of Empirical Finance. Vol. 1, pp. 313-341.
- Ross, S. (1977), “The Determination of Financial Structure: The Incentive Signaling Approach,” Bell Journal of Economics, Vol. 8, pp. 23-40.
- Smith, C.W. and Stulz, R.M. (1985), “The Determinants of Firms’ Hedging Policies,” Journal of Financial and Quantitative Analysis, Vol. 20, pp. 391-405.
- Vivel, M., Otero, L., Fernandez, S., and Duran, P. (2013), “Is Value Creation Consistent with Currency Hedging?” European Journal of Finance, Vol. 21, N° 10/11, pp. 912-945.