Corporate Hedging of Exchange Risk When Foreign Currency Cash Flow Is Uncertain
分析外币现金流不确定的企业如何通过超额外币借款并投资国内无风险证券来降低破产概率，发现汇率不确定性反而有助于企业降低破产风险。
We analyze hedging policies for a corporation that generates a foreign currency cash flow that is not known with certainty. We obtain an intriguing result that the probability of bankruptcy for a firm that attempts to minimize this probability is lower when there is some uncertainty in the exchange rates than when there is no uncertainty in the exchange rates: the firm reduces the probability of bankruptcy by borrowing more than its financing needs through foreign currency borrowing alone and by investing the excess funds in domestic risk-free securities.