XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX PRELIMINARIES: Please turn on "word wrap" when reading this document. This file describes the content of the foreign exchange derivative (FX) hedging database. Please review and reference the following papers when using this data: Offshore Activities and Financial vs Operational Hedging, 2017, Journal of Financial Economics 125 (2), 217-244. * We thank metaHeuristica for making this data feasible to generate and to do so very efficiently. For inquiries regarding how to create similar data structures, please contact Christopher Ball (christopher.ball@metaheuristica.com). XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX DATA DESCRIPTION: ****** Please read the data section of the above paper for complete details regarding how the variables are constructed. ******** We note only some basic details about the data here (see paper for full detail). First, the data is indexed by Compustat gvkey and year, so they can be merged into existing databases easily. The year refers to the calendar year in which the given firm's fiscal year ends. The data is not lagged. If researchers wish to have lagged data, they must lag the data on their own. Also note that this data has been extended since the paper was written and now covers the years from 1997 to 2015. In order to be included in this database, a firm must have a machine readable 10-K. 10-Ks were processed using the metaHeuristica software program. We thank Christopher Ball from metaHeuristica for this access. *** There are 3 FX hedging variables included in the database (please read the data section of the above paper for more details). *** (1) All derivatives (variable= SizNumFXHedge): number of mentions of the firm using foreign currency derivatives. (2) Forward & futures (variable= SizNumFXFutFor): number of mentions of the firm using foreign currency futures and forward derivatives. (3) Futures (variable=SizNumFXFutures): number of mentions of the firm using foreign currency futures derivatives. Additionally, we include the number of paragraphs in the 10-K (SizWhole10K), which can be used as a scaling variable if desired.