Abstract:This study investigates the exchange rate exposure of Turkish energy fi rms from 2002 to 2010. We employed a regression model that is constructed by adding exchange rate and oil price factors to Fama-French Three Factor Model. Empirical results suggest that exchange rate risk appears to impact energy fi rms diversely. Among the 9 energy fi rms in our sample, only 2 fi rms seem to be exposed to exchange rate risk. These two energy fi rms appear to have larger open foreign currency positions and do not use any hedging methods. On the contrary, rest of the energy fi rms that are not found to be aff ected by exchange rate risk either seem to have smaller open foreign currency positions or employ hedging methods to manage exchange rate risk. Overall, our results provide evidence that energy fi rms exposed to exchange rate risk share similar characteristics.

In this study, exchange rate exposures of tourism firms, whose shares are traded in Borsa İstanbul (BIST), were investigated. In this manner, the data pertaining to eight tourism firms, whose shares are traded in BIST, were included in analyses for July 2002 -June 2010. A regression model, which was developed by adding the exchange rate factor to the FamaFrench three-factor model, was used in the study. Analysis results revealed that exchange rate risk is a crucial risk factor for three tourism firms. However, it was determined that the three tourism firms that are negatively affected by exchange rate risk have considerably larger open foreign currency positions than other tourism firms.