Article ID Journal Published Year Pages File Type
967568 Journal of Multinational Financial Management 2006 26 Pages PDF
Abstract
Assessing the sensitivity of firm value to exchange rate changes has been one of the most challenging issues in international financial management over the last two decades. This paper reviews the rapidly growing exchange exposure literature, with particular reference to recent developments. The studies reviewed focus on two primary areas of inquiry: the theoretical foundations of exchange risk exposure and the empirical evidence on the link between stock returns and currency fluctuations. Although much has been learned in each field, this survey highlights the areas of research in which our understanding of the mechanism of exchange exposure is still incomplete.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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