scholarly journals Pengaruh Risiko Pasar terhadap Profitabilitas Perusahaan Subsektor Bank pada Bursa Efek Indonesia

2018 ◽  
Vol 7 (2) ◽  
pp. 197
Author(s):  
Nawir Mansyur
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Exchange ◽  
Financial Statements ◽  
Interest Rate Risk ◽  
Foreign Exchange Rate ◽  
Exchange Rate Risk ◽  
Rate Risk ◽  
Analysis Technique ◽  
Endogenous Variables

<em>This study aims to analyze the effect of interest rate risk and exchange rate risk on the profitability of the company sub-sector of the bank in Indonesia Stock Exchange (IDX). This study uses panel data from 24 bank financial statements from 2011-2014. The analysis technique uses path analysis with Smart PLS 3.0. Exogenous variables of interest rate risk and foreign exchange rate risk and endogenous variables are profitability. The results of the study found that interest rate risk positively and significantly affects the profitability and exchange rate risk negatively and significantly affects the profitability of the company sub-sector of the bank in Indonesia Stock Exchange</em>.

scholarly journals The sensitivity of GCC firms’ stock returns to exchange rate, interest rate, and oil price volatility

2020 ◽  
Vol 17 (4) ◽  
pp. 35-50
Author(s):  
Mariam Alenezi ◽  
Ahmad Alqatan ◽  
Obby Phiri
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Returns ◽  
Price Volatility ◽  
Interest Rate Risk ◽  
Oil Price ◽  
Exchange Rate Risk ◽  
Oil Price Volatility ◽  
Gcc Countries ◽  
Rate Risk

This study seeks to investigate the sensitivity of stock returns to exchange rate, interest rate and oil price volatility in the Gulf Cooperation Council (GCC) countries. It employs both the multivariate ordinary least square (OLS) regression and the exponential generalized autoregressive conditional heteroscedastic in mean (EGARCH-M) models to analyse the data collected from Bloomberg and DataStream on the GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) for the period January 2007 to June 2012. The study shows that stock returns in GCC countries are influenced by the exchange rate risk, interest rate risk and oil price risk. However, the exposure is highest for exchange rate risk and lowest for interest rate risk. While the effects of these risks were mixed, overall, exchange rate risk and oil price risk showed a positive and significant relationship as compared to the interest rate risk that showed a negative significant effect on firm values. The level of the effect of these risks also differed from country to country. Further, foreign operations and firm size had a significant influence on the extent of the firms’ exposure to all three risks. The study findings suggest that the volatility of stock returns affected by changes in the risk factors could indicate non-prioritisation of risk management by firms. This has implications in terms of consideration of the long-term exposure of firms to these three risks and thus, the need for effective risk management strategies.

scholarly journals INTEREST RATE RISK IN TURKISH FINANCIAL MARKETS ACROSS DIFFERENT TIME PERIODS

2014 ◽  
Vol 16 (3) ◽  
pp. 183-204
Author(s):  
Durmus Özdemir ◽  
Harald Schmidbauer
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Stock Exchange ◽  
Risk Measure ◽  
Generalized Pareto Distribution ◽  
Interest Rate Risk ◽  
Negative Effects ◽  
Good Tool ◽  
Generalized Pareto ◽  
Rate Risk

A Measuring the risk associated with interest rates is important since it is beneficial in taking measures before negative effects can take place in an economy. We obtain a risk measure for interest rates by fitting the generalized Pareto distribution (GPD) to positive extreme day-to-day changes of the interest rate, using data from the Istanbul Stock Exchange (ISE) Second Hand Bond Market, namely Government Bond interest rate closing quotations, for the time period 2001 through 2009. Although the use of the GPD in the context of absolute interest rates is well  ocumented in literature, our approach is different insofar and contributes to the literature as changes in interest rates constitute the target of our analysis, reflecting the idea that risk arises from abrupt changes in interest rate rather than in interest rate levels themselves. Our study clearly shows that the GPD, when applied to interest rate changes, provides a good tool for interest rate risk assessment, and permit a period-specific risk evaluation.  Keyword: Interest rate risk; covered interest parity; Turkey; generalized Pareto distributionJEL Classification: G1; C1

General Guidelines for the Conversion of Damages Calculated in Foreign Currency: Tort Claims

2019 ◽  
Vol 28 (1-2) ◽  
pp. 1-14
Author(s):  
Antonio Avalos
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Foreign Currency ◽  
Exchange Rate Risk ◽  
Economic Factors ◽  
Risk Allocation ◽  
Rate Risk ◽  
Legal Arguments ◽  
The Law ◽  
Tort Claims

Abstract This paper contributes to the debate about determining the proper procedures for the conversion of damages calculated in foreign currency into U.S. dollars by offering general guidelines applicable to tort claims. The analysis expands beyond the typical discussion of selecting the appropriate conversion date by examining other relevant economic factors such as exchange rate risk allocation, the application of an adequate interest rate for the calculation of pre- and post-judgment interest, and the implications of the currency in which the plaintiff suffers the loss. While aiming at properly and fairly compensating the plaintiff as the essential goal of the law on damages, the general guidelines for damages conversion presented rely more on economic principles than on legal arguments.

scholarly journals Hedging foreign exchange rate risk: Multi-currency diversification

2016 ◽  
Vol 25 (1) ◽  
pp. 2-7 ◽  
Author(s):  
Susana Álvarez-Díez ◽  
Eva Alfaro-Cid ◽  
Matilde O. Fernández-Blanco
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Exchange Rate Risk ◽  
Rate Risk
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