Hedge or Speculation? (Rossi Jr.)

Hedge or speculation? Evidence of the use of derivatives by Brazilian firms during the financial crisis by José Luiz Rossi Júnior published by Insper. “This paper analyzes the use of foreign exchange derivatives by non-financial publicly traded Brazilian companies from 2007 to 2009. Using balance-sheet data on firms’ positions in derivatives and their foreign exchange exposure, this study finds that a significant number of companies speculated in the derivatives market.”