Exchange rate exposure at the firm and industry levels: Evidence from Turkey

Akay, Gokhan H.; Cifter, Atilla

doi:10.1016/j.econmod.2014.09.003

Cited by 19 publications

(16 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, the impact on cash flos may subject to industry-specific factors. For instance, it has a negative impact on the cash flow in the textile industry in the Istanbul market (Akay & Cifter, 2014). In another study, using quick ratio rather than cash flow, the measurement is insignificant to explain foreign exchange exposure in emerging markets (Ye, Hutson, & Muckley, 2014).…”

Section: Industry Factorsmentioning

confidence: 96%

“…Marston (2001) showed that foreign exchange exposure is dependent on the competitive structure of an industry. In a study on Turkey's Firms, Akay and Cifter (2014) conclude that the degree of industrial openness could influence foreign exchange exposures in firms.…”

Section: Industry Factorsmentioning

confidence: 99%

“…A higher debt ratio towards higher foreign exchange exposure in firms with international business implies a higher possibility that firms use hedging instrument (Geczy, Minton, & Schrand, 1997;He & Ng, 1998;Ye et al, 2014). Therefore, there is a negative relationship between debt ratio and foreign currency exposure (Akay & Cifter, 2014). Other firms' characteristics with higher growth opportunities (market to book ratio) and tight financial constraints are prompt to use hedging tools to reduce cash flow variation (Geczy et al, 1997).…”

Section: Industry Factorsmentioning

confidence: 99%

“…As in other studies on foreign exchange exposure, (e.g. Akay & Cifter, 2014), the study used ordinary least square regression on panel dataset consists of 989 firms listed on Bursa Malaysia. The study applies a full population of 989 firms which has a constant variance and therefore heteroscedasticity in the study can be disregarded.…”

Section: Ddomesticmentioning

confidence: 99%

“…Uncertainty in the US Dollar (USD) has brought exchange-rate risk to many companies in the emerging market, especially Malaysia which have seen Malaysian Ringgit depreciated significantly as compared to other emerging market counterparts. Firms with foreign exchange exposures need to adjust its costs and benefits in operations to avoid an adverse effect on firms' cash flows, and value (Akay & Cifter, 2014). The exposures cause challenges to macroeconomic management in emerging economies and affect the profit and loss of firms.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Exchange Rate Exposure and Crude Oil Price: The Case of an Emerging Market

Hong¹,

Chu²,

Song³

2018

AAMJAF

View full text Add to dashboard Cite

The purpose of this study is to examine the depreciation of USD and crude oil price on exchange rate exposure in Malaysia. Based on the argument that domestic and foreign markets could affect foreign exchange exposure, the study examined 993 public listed firms that involved in domestic business, foreign sales, and assets, respectively. The sample period of 2014 to 2016 illustrates different time-varying conditions when the depreciation of Ringgit Malaysia and crude oil price were the most severe for the last decades. The findings show that firms with foreign sales face the most significant negative exposure of foreign exchange, followed by domestic firms and firms with foreign assets. The study shows that many Malaysia export firms are not effective in hedging, hence, they did not benefit from the depreciation of Ringgit Malaysia and crude oil price. The study concludes that there is an influence of domestic and foreign market effects on foreign currency exposure in the economy.

show abstract

Section: Industry Factorsmentioning

confidence: 96%

Section: Industry Factorsmentioning

confidence: 99%