The Foreign Exchange Exposure of Japanese Multinational Corporations

Jia, He; Ng, Lilian

doi:10.4314/ajfm.v7i2.24347

Cited by 160 publications

(284 citation statements)

References 15 publications

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“…Whether it is favorable or unfavorable depends on the entire industrial structure within a country. Studies emphasizing on the impact of the exchange rate on stock price for Taiwan can be found in Wu (1997), Guo and Wu (1998) and Chiao, Hung, and Nwanna (2001); whereas Choi, Hiraki, and Takezawa (1998), He and Ng (1998), Doukas, Hall, and Lang (1999), Caporale, Pittis, and Spagnolo (2002), Elyasiani and Mansur (2005) and Homma, Tsutsui, and Benzion (2005) among others, studied the relationship between the exchange rate and stock price of Japan.…”

Section: Introductionmentioning

confidence: 99%

Interrelationships among stock prices of Taiwan and Japan and NTD/Yen exchange rate

Yau

Nieh

2006

Journal of Asian Economics

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Since the Asian Financial Crisis in 1997, the relationship between stock prices and exchange rates has received considerable amount of attention from the economists, international investors and policy makers. The work reported here employs various linear and non-linear, time-series methodologies to investigate the short-term and long-term interrelationships among the stock prices of Taiwan and Japan and the NTD/Yen exchange rate during the period of January 1991-July 2005. The findings from this study include: firstly, the stock prices of Taiwan and Japan impact each other for short durations; secondly, with regard to relationship between stock prices and exchange rates, the portfolio approach is supported for the short-term and the traditional approach is more plausible for the long-term in the Taiwanese financial market, whereas the portfolio approach is not suitable for the Japanese stock market; and thirdly, there appears to be no long-term relation between NTD/Yen exchange rate and the stock prices of Taiwan and Japan. #

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Section: Introductionmentioning

confidence: 99%

Interrelationships among stock prices of Taiwan and Japan and NTD/Yen exchange rate

Yau

Nieh

2006

Journal of Asian Economics

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“…Bartov and Bodnar [24]; Choi and Prasad [25]; Jorion [26,27] found that firm value is insensitive to the exchange rate fluctuations. However the studies of He and Ng [28]; Bodnar and Gentry [29]; Booth and Rotenberg [30] found that exchange rate movement has a significant impact on the firm value. As said previously, the fact that large number of firms involving in the FX exposure management, we may say it has a positive impact on the firm value.…”

Section: Literature Reviewmentioning

confidence: 99%

Exchange Rate Exposure of Indian Firms Using Capital Market Approach

Prasad¹,

Kr²

2016

J Account Mark

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The unintuitive movement in the exchange rates will expose the firms involved in international trade to exchange rate exposure. The exchange rate exposure cannot be eliminated; however, it can be effectively managed. Currency derivatives are extensively used to manage the short term exposures and strategic decisions to manage the long term exposures. The past researches conducted on exchange rate exposure management indicate that managing the exchange rate exposures will increase the value of the firm. Therefore, no firms involved in global trade could afford to demine the importance of managing exchange rate exposures. The present research attempts to measure the level of exchange rate exposure of the firms in India. A sample of 76 non-financial companies listed in CNX100 index of NSE was selected as sample and the data for a period of one year is being studied. The results of the study are 21 percent of the sample firms are significantly exposed to foreign exchange risk out of which 25 percent had positive coefficients and 75 percent of the firms had negative coefficients. 57 percent of the firms from Software and IT industry and 15 percent of the firms from mining, refinery and petroleum industry were significantly exposed to foreign exchange risk. JEL Code: F31

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“…Moreover, He and Ng (1998) investigated Japan 171 multinational firms there are about 25% firm"s stock returns significantly positively correlated to the foreign exchange exposures, themselves. And the effects are increasing as firm"s size increases.…”

Section: Wherementioning

confidence: 99%

The Enterprise Risk Management of Foreign Exchange Exposures: Evidence from Taiwanese Hospitality Industry

Hsiao

Zhang

Chiu

et al. 2017

Asian Journal of Economics and Empirical Research

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For this paper, I use the ARIMA model to study the relationship between business performance and exchange rate fluctuations. Through this model, the empirical results shows that the influences of foreign exchange rate fluctuations on the tourist hotel business performance are significant and different across currencies and firms. Furthermore, according to the framework of Kim (2013) we employ the modern portfolio theory proposed by Markowitz (1952) to give an optimal foreign exchange allocation for each tourist hotel company's financial decision-makers, which will avoid the risk of exchange rate fluctuations expose and reduce losses due to the fluctuations of exchange rates, and complete the construction of enterprise risk management system (ERM).

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The Foreign Exchange Exposure of Japanese Multinational Corporations

Cited by 160 publications

References 15 publications

Interrelationships among stock prices of Taiwan and Japan and NTD/Yen exchange rate

Interrelationships among stock prices of Taiwan and Japan and NTD/Yen exchange rate

Exchange Rate Exposure of Indian Firms Using Capital Market Approach

The Enterprise Risk Management of Foreign Exchange Exposures: Evidence from Taiwanese Hospitality Industry

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