scholarly journals Asymmetric Exchange Rate Exposure - Research in Southeast Asian Countries

2017 ◽  
Vol 4 (2) ◽  
pp. 262-279
Author(s):  
Minh Thi Hong Le ◽  
Ha Thi Cam Huynh ◽  
Hong Thi Thu Dinh ◽  
Minh Thi Hong Le ◽  
Ha Thi Cam Huynh ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Stock Returns ◽  
Real Exchange Rates ◽  
Currency Depreciation ◽  
Exchange Rate Fluctuations ◽  
Exchange Rate Exposure ◽  
The Exchange Rate ◽  
Net Export ◽  
The Impact

The study aims to analyse the impact of exchange rate exposure on stock returns in six countries representative of Southeast Asia, including Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam from 2009 to 2014. Both nominal and real exchange rates are taken into account for evaluating exchange rate fluctuations via panel data. In order to achieve this goal, a panel regressive estimation approach is proposed in which a GLS model is firstly used to treat heteroscedasticity in the panel data and, then, a GMM estimator is employed to ensure the consistency of the estimates. The results point out that the exchange rate exposure of these countries is asymmetric. At market level, for a rise in the exchange rate (or local currency depreciates), the average stock returns tend to decrease. However, due to the favourable impact of currency depreciation on the net export position, the reduction speed of stock returns is faster than the rising speed of the exchange rate.

scholarly journals Petroleum and Food Sectors Lost Stock Returns against Investments in PSX

2021 ◽  
Vol VI (I) ◽  
pp. 99-111
Author(s):  
Syed Muhammad Ali Tirmizi ◽  
Haider Ali ◽  
Sharif Ullah Jan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Factor Model ◽  
Structural Break ◽  
Unit Root Test ◽  
Listed Firms ◽  
Market Return ◽  
Exchange Rate Exposure ◽  
Petroleum Sector ◽  
The Impact

The impact of exchange rate exposure and market return on stock returns of petroleum and food sectors PSX listed firms has been investigated empirically. Two econometric models formulated based on the Jorion approach of the two-factor model have been analyzed for petroleum and food sectors stock returns, market return and exchange rate (i.e., USD) for the study period 2005-2012, which represent an era of military regime proceeded by the democratic government of Pakistan Peoples Party. A sample of 37 petroleum and food sectors listed firms have been evaluated by applying the unit root test and OLS multiple regression. Further, the Quandt-Andrews test of unknown breakpoint has been applied, which showed an extended structural break during the period 2007 to 2010. Additionally, the results revealed that the coefficients of exchange rate and market return are negatively related to petroleum and food sectors stock returns. Therefore, investors must take precautions before investing funds in stocks of food and petroleum sector firms.

scholarly journals Coping with the Exceptional Economic Problems in Turkey: A Field Survey on SMES

2019 ◽  
Vol 12 (2) ◽  
pp. 109-126 ◽  
Author(s):  
Ercan Özen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Developed Countries ◽  
Business Owners ◽  
Important Place ◽  
Exchange Rate Fluctuations ◽  
The Exchange Rate ◽  
The Impact

Abstract Developing countries need higher economic growth to reach the level of developed countries. When developing countries exceed the potential economic growth, problems, such as, high external debt and high current deficit emerge. Such situations increase the financial risk of the country; in addition, international political risks, fluctuations in capital inflows and some manipulative movements have subjected countries to extreme exchange rate fluctuations. Purposes of this research: (1) to uncover the impact of high exchange rate volatility on small business activities and (2) to determine whether the level of exposure of the exchange rate shock on business owners varies by age. The methodology of the study involved a survey administered to 390 small and medium-sized enterprises (SMEs). The findings of the study show that after a period of significant exchange rate fluctuations, business activities were negatively affected, sales decreased, and job cuts increased. On the other hand, the exchange rate effect was mostly felt by all business owners of different ages. According to the study, it can be concluded that small enterprises are vulnerable to rising exchange rate volatility. The effect on SMEs with more work experience is not different. In order to alleviate the effects of adverse exchange rate movements, enterprises should be more cautious in their activities. Two suggestions can be made at this point: (i) Governments should follow optimal growth policies and (ii) Small businesses that have an important place in the economy should be made aware of the exchange rate risk and crisis management.

scholarly journals The impact of some macroeconomic indicators on exchange rate fluctuations in Sudan in the period (1990- 2016): أثر بعض مؤشرات الاقتصاد الكلي على تقلبات أسعار الصرف في السودان في الفترة (1990- 2016)

2020 ◽  
Vol 4 (10) ◽  
Author(s):  
Abdelsamie Eltaeb Tayfor
Keyword(s):  
Exchange Rate ◽  
Time Series Regression ◽  
Econometric Methods ◽  
Exchange Rate Fluctuations ◽  
Data Collection And Analysis ◽  
Macroeconomic Indicators ◽  
Increase Productivity ◽  
The Exchange Rate ◽  
The Impact

The study aimed to identify the determinants and economic variables that affect the exchange rate in Sudan during the period (1990- 2016). The study used the descriptive analytical approach in data collection and analysis as well as the use of econometric methods in the construction of economic models and analysis of time series regression models to verify the existence of a long- term integrative relationship between independent variables and dependent variable. The results of the study showed a positive correlation between GDP, degree of economic openness, inflation and exchange rate during the study years, and an inverse relationship between money supply and exchange rate. The study recommended the need to move away from administrative decisions in determining the exchange rate, while achieving greater flexibility in the exchange rate, and increased interest in bank financing of projects that lead to increase productivity and improve GDP and thus improve the exchange rate by encouraging domestic exports.

Exchange-rate fluctuation and pricing behavior in China’s wood-based panel exporters: evidence from panel data

2017 ◽  
Vol 47 (10) ◽  
pp. 1392-1404 ◽  
Author(s):  
Fang Wang ◽  
Zhonghua Yin ◽  
Jianbang Gan
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
International Market ◽  
Market Model ◽  
Exchange Rate Fluctuation ◽  
Pricing To Market ◽  
Rate Fluctuation ◽  
Pricing Behavior ◽  
The Exchange Rate ◽  
The Impact

As the largest wood-based panel producing and exporting country, China has experienced sharp reductions in the growth rate of its wood-based panel exports because of pressure caused by exchange-rate fluctuation. These fluctuations were exacerbated by the global financial crisis. China’s wood-based panel exporters need to adjust their pricing strategy to cope with the changes of international market conditions. Thus, it is necessary to investigate the relationship between exchange-rate fluctuation and the pricing behavior of China’s wood-based panel exporters. To evaluate the impact of the exchange rate on China’s wood-based panel export prices across multiple destinations, a pricing-to-market model incorporating panel data was used. The empirical results suggest that although complete exchange-rate pass-through exists widely in China’s wood-based exports, China’s fiberboard and plywood exporters tended to adopt different pricing strategies in the international wood-based panel market during the post-crisis era. China’s fiberboard exporters often used the pricing-to-market model to determine prices in the main export destination countries, while China’s plywood exporters tended to amplify the exchange-rate effects. This indicates that China’s plywood exporters have stronger international market power than China’s fiberboard exporters, partly because China’s plywood exporters have more advantages in terms of skilled labor.

scholarly journals Exchange Rate Exposure and Firm Value: An Assessment of Domestic Versus Multinational Firms

2018 ◽  
Vol 23 (1) ◽  
pp. 51-77
Author(s):  
Hajra Ihsan ◽  
Abdul Rashid ◽  
Anam Naz
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Firm Value ◽  
Multinational Firms ◽  
Stock Exchange ◽  
Exchange Rate Volatility ◽  
Generalized Least Squares ◽  
Generalized Least Squares Estimator ◽  
Exchange Rate Exposure ◽  
The Impact

This paper examines the impact of exchange rate changes on the stock returns of 232 nonfinancial firms listed on the Pakistan Stock Exchange, for the period January 2000 to June 2014. To mitigate the problem of heteroskedasticity, we use a generalized least squares estimator. The estimated regression models indicate that exchange rate variations have a significant effect on firm value and that firms are exposed significantly to one-period lagged variation in the exchange rate. Our results suggest that, in addition to exchange rate dynamics, increased exchange rate volatility appears to have significant and negative effects on firms’ stock returns. Compared to domestic firms, multinational firms experience greater exchange rate exposure. Finally, we show that exchange rate depreciation and appreciation have significant differential effects on firms’ stock returns. These effects vary significantly across domestic and multinational firms.

scholarly journals The impact of exchange rates on economic growth in Iraq for the period 1995-2015

2019 ◽  
Vol 5 (1) ◽  
pp. 17
Author(s):  
Asaad Hamdi Maher
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Growth Models ◽  
Exchange Rate Fluctuations ◽  
The Exchange Rate ◽  
The One ◽  
Main Engine ◽  
The Impact ◽  
Economic Growth Models

The currency is the main engine of the process of trade at the internal and external levels, and the exchange rate is one of the fundamentals of the foreign trade to settle international payments, as the import process to the currency of the country of origin to pay the value of imported goods on the one hand, on the other hand, we find that individuals in the case their travel to another country they need the currency of the country they travel to, and in this case they find themselves in the process of exchange, so that shifting in the exchange rate affect the process of trade and thus on economic growth. Based on the above, the title of the topic, which aims to identify the theoretical framework of exchange rates and economic growth models as well as measuring the impact of exchange rate fluctuations on economic growth in Iraq, has been chosen by formulating a standard model for the period 1995-2015

scholarly journals The Impact of Exchange Rate Movements on Firm Value in Visegrad Countries

2017 ◽  
Vol 65 (6) ◽  
pp. 2105-2111 ◽  
Author(s):  
Jana Šimáková
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Firm Value ◽  
Market Values ◽  
Exchange Rate Exposure ◽  
Positive Tendency ◽  
Short Period ◽  
The Exchange Rate ◽  
The Impact ◽  
Visegrád Countries

Company’s involvement in global activities through international trade is the primary source of their foreign exchange exposure. Many empirical studies suggest the negative impact of uncertainty about the development of the exchange rate on cash flow and profitability of companies, and thus their market values. Some economic studies show that foreign revenues are positively correlated with the exchange rate exposure and in a short period, currency depreciation negatively affects the market value of listed companies. On the other hand, there are studies that show no statistically significant links between the value of the companies and exchange rates. The aim of this paper is to evaluate the effect of exchange rates on the value of companies listed on stock exchanges in the Visegrad countries. Paper applies Jorion’s model and panel data regression for the sample period 2002 – 2016. Estimations for the whole period revealed negative relationship between exchange rate and value of stock companies. The highest exposure is observed in case of Hungary and Czechia. Positive tendency can be seen in comparison of pre‑crisis and post‑crisis period. Except the case of Hungary, all markets showed decreased exchange rate exposure in time.

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