Media coverage
1
Media coverage
Title Does FX hedging actually boost innovation? Degree of recognition International Media name/outlet Business Talk Media type Podcast Duration/Length/Size 35 minutes Date 6/08/26 Description In a recent deep-dive interview on the Business Talk podcast hosted by Deepak Bhatt, Dr. Sapnoti K. Eswar, Senior Lecturer in Finance at the University of St. Andrews Business School, unpacked her landmark Research Policy paper co-authored with Dr. Lora Dimitrova, exploring whether FX derivatives adoption directly drives technological innovation. Capitalizing on the exogenous shock of the 1987 ISDA Master Agreement, their research proves a causal link: firms with high pre-1987 foreign exchange exposure saw a roughly 12% increase in patent filings approximately three years after adopting FX derivatives. This boost is predominantly driven by equity-constrained firms that rely on steady cash flows to protect their R&D pipelines. Rather than fueling high-risk moonshots, hedging enables companies to fund incremental, compounding innovations. Ultimately, Dr. Eswar offers a crucial reframe for modern executives and boards: managing financial risk is not merely a defensive strategy, but a fundamental driver of a firm's capacity to invent and grow. Producer/Author Global Management Consultancy URL https://www.youtube.com/watch?v=CzGTa_E1TjY Persons Sapnoti Eswar