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Family vs. Non-Family Firms: Hedging Foreign Exchange Risk with Derivatives
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School.
2025 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Effective risk management, particularly through the use of derivatives, is crucial for mitigating the heightened foreign exchange (FX) risk faced by firms in export-driven economies such as Sweden. Derivatives offer a cost-efficient tool to reduce overall risk exposure, and in economies characterized by high ownership concentration, the role of family ownership in shaping hedging decisions warrants close examination. While previous research offers mixed findings regarding the influence of family ownership on hedging strategies, limited attention has been given to whether family versus non-family firms, especially within the Swedish environment, differ in their use of FX derivatives. This study investigates whether family ownership has a significant influence on firms’ engagement in currency derivative hedging against FX risk. The empirical findings suggest that family ownership does not influence hedging behavior. Instead, hedging via FX derivatives appears to be more closely related to firm-specific characteristics.

Place, publisher, year, edition, pages
2025. , p. 60
Keywords [en]
Risk Management, Hedging, Foreign Exchange Derivatives, Foreign Exchange Risk, Family Firm
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-67890OAI: oai:DiVA.org:hj-67890DiVA, id: diva2:1961564
Subject / course
JIBS, Business Administration
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Examiners
Available from: 2025-06-18 Created: 2025-05-27 Last updated: 2025-10-13Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf