EMPLOYMENT OF HEDGE BY BRAZILIAN FIRMS LISTED IN THE NEW MARKET SEGMENT OF THE BM&F BOVESPA

Abstract

Current analysis verifies the use of hedge by Brazilian firms of the New Market segment of the BM&FBovespa and their aims. A descriptive research with a qualitative approach was undertaken through information provided by firms at the BM&FBovespa site coupled to an analysis of their accounts and explicatory notes for 2010 and 2011. Hedge use and aims by firms which integrated the sample were identified. Sample comprised 129 firms minus 19 financial firms. Initial sample was reduced to 110 firms but two were further excluded, one firm only had 2011 data and the other initiated activities in 2012. Results showed that during the period under analysis there was a relevant use of hedge by the segment with special reference to the sector Non-cyclic Consumption with the highest use. The Construction and Transport section had the least use and the Information Technology section did not use hedge. It should be underscored that during 2010 and 2011 firms used hedge to protect assets and liabilities from risks related to exchange variations, oscillations in foreign currency and/or interest rates. Based on the research data, it may be concluded that there was an increase in the use of hedge by firms which integrate the New Market of the BM&FBovespa, excepting Information Technology, and they used hedge to protect their assets and liabilities.