Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
963566 | Journal of International Financial Markets, Institutions and Money | 2010 | 12 Pages |
Abstract
I model the relation between corporate currency exposure and fundamental variables like demand elasticities and operating cost structure. The currency location of a firm's operating costs may be in the home currency, the foreign currency, or partially in each. I start with a single-firm setting and extend the results to a competitive setting. The model should help managers better understand the determinants of currency exposure and thus better perform the important tasks of strategic planning and managing enterprise risk.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Thomas J. O'Brien,