This study examines the effect of foreign debt use on the reduction in foreign exchange rate risk between multinational enterprises (MNEs) and exporting firms. We use manufacturing firms in Korea and find that the hedging effectiveness of foreign debt of MNEs is more salient than that of exporting firms. Results are robust after controlling for self-selection effect and alternative measurements for individual currency exposure. Our findings suggest that the effectiveness of foreign debt in reducing FX exposure is influenced by the volatility of foreign cash inflows that depends on different operating characteristics between two groups of firms.

中文翻译：

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外债对冲汇率风险的有效性：跨国企业与出口企业

这项研究检验了使用外国债务对降低跨国公司（MNE）与出口公司之间的汇率风险的影响。我们在韩国使用制造公司，发现跨国公司的外债对冲有效性比出口公司更显着。在控制了自我选择效应和个别货币敞口的替代衡量之后，结果是可靠的。我们的发现表明，外国债务在减少外汇风险方面的有效性受到外国现金流入波动性的影响，外国现金流入的波动性取决于两组公司之间的不同运营特征。