Corporate Financial Policies and the Exchange Rate Regime: Evidence from Brazil

@inproceedings{Junior2004CorporateFP,
  title={Corporate Financial Policies and the Exchange Rate Regime: Evidence from Brazil},
  author={Jos{\'e} Lu{\'i}z Rossi Junior},
  year={2004}
}
This paper analyzes the relationship between companies' financial policies and the exchange rate regime for a sample of non-financial Brazilian companies from 1996 to 2006. The adoption of a floating exchange rate regime is shown to improve the match between the currency composition of companies' assets and liabilities. The paper also shows that this reduction in companies' currency mismatches is more pronounced for companies in the highest quantile of foreign exposure; therefore the results… CONTINUE READING

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