Variability of Foreign Exchange Exposure and its Relations to Firm Value

2016 ◽  
Vol 20 (3) ◽  
pp. 79
Author(s):  
Taek Ho Kwon
Keyword(s):  
Foreign Exchange ◽  
Firm Value ◽  
Foreign Exchange Exposure

scholarly journals Effect of Contemporaneous Exchange Rate Changes on Value of Multinational Nonfinancial Companies Listed at Nairobi Securities Exchange

2018 ◽  
Vol 6 (07) ◽  
Author(s):  
Nebart Oguda Avutswa ◽  
Oluoch Oluoch ◽  
Tobias Olweny
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Firm Value ◽  
Weighted Average ◽  
Negative Influence ◽  
Panel Model ◽  
Exchange Rate Movements ◽  
Foreign Exchange Exposure ◽  
Exchange Rate Changes

The study investigates the effect of contemporaneous exchange rate changes on value of multinational nonfinancial companies listed at Nairobi Securities Exchange for period 2001-2016. Unexpected exchange rate changes and lagged exchange rate movements were used as control variables. The study adopted a two staged methodology. The first stage involved the determination of the foreign exchange exposure. At this point the REER is determined as the weighted average of the seven major currencies used by Kenya. The unexpected foreign exchange changes were determined using the ARIMA and GARCH model. The second stage of analysis involves a panel model where different aspects of foreign exchange exposure are regressed on firm value. The results indicated that contemporaneous exchange rate changes have a negative significant influence on the value of nonfinancial companies listed at the Nairobi Securities Exchange. The results of the study were inconclusive on the effects of lagged changes in exchange rates on firm value. The findings of the study reveal that unexpected exchange rate changes have a significant negative influence on firm value.

An Empirical Analysis of Foreign Exchange Exposure of CNX 100 Companies

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 1-9 ◽  
Author(s):  
Sriram Mahadevan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Future Research ◽  
Export Ratio ◽  
Exchange Rate Exposure ◽  
Ratio Size ◽  
Foreign Exchange Exposure ◽  
Exchange Rate Changes

The present study has empirically examined the level of foreign exchange exposure and its determinants of CNX 100 companies. For the purpose of study, the relationship between exchange rate changes and stock returns for a sample of 82 companies was determined for the period April 2011-March 2016. The study finds that 49% of the sample companies had significant positive foreign exchange rate exposure and the found that the companies could be exporters or net importers. To explore factors determining foreign exchange rate exposure, variables such as export ratio, import ratio, size of a company, hedging activities were regressed against the exchange exposure and the study found that none of the factors was influencing the exchange rate exposure. The study concludes that the reasons for insignificant influence of the variables could be the natural hedging practices of companies, offsetting of exports and imports and heterogeneous of the sample size. The study offers few directions for future research in this area.

scholarly journals Foreign exchange exposure: Evidence from the U.S. insurance industry

2009 ◽  
Vol 19 (2) ◽  
pp. 306-320 ◽  
Author(s):  
Donghui Li ◽  
Fariborz Moshirian ◽  
Timothy Wee ◽  
Eliza Wu
Keyword(s):  
Foreign Exchange ◽  
Insurance Industry ◽  
Foreign Exchange Exposure ◽  
The U.S

scholarly journals Foreign Exchange Exposure and Hedging of Turkish Companies: Panel Data Evidence

2016 ◽  
Vol 9 (6) ◽  
pp. 44
Author(s):  
Mahmut Erdogan
Keyword(s):  
Panel Data ◽  
Foreign Exchange ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Empirical Support ◽  
Turnover Ratio ◽  
Time Horizons ◽  
Short Run ◽  
Asset Turnover ◽  
Foreign Exchange Exposure

<p>This study investigates the foreign exchange exposure and determinants of risk for different time horizons of Turkish companies from 1997 to 2011. In order to analyze the effect of the 2001 crisis, the study is split into two sub-periods: pre-crisis, and post-crisis. The empirical findings of the study suggest a negative relationship between exposure and asset turnover ratio, and profit margin, while there was a positive relationship between exposure and leverage. The study also provides empirical support for the fact that the companies with a higher export rate are exposed to higher risk. Finally, large companies are subject to less risk in the short run.</p>

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