RMB resilience strategies to drive business performance amid the global crisis
The purpose of this article is to examine the impact of RMB exchange rate fluctuations on the strategic decisions of Chinese companies in the context of their export activity in the foreign market. The research methodology is based on integrated annual customs data for the period 2014–2021 and econ...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2023-12-01
|
| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vilniustech.lt/index.php/JBEM/article/view/20654 |
| _version_ | 1797351829572419584 |
|---|---|
| author | Yingrong Zheng Hao Dong Marko Milojevic |
| author_facet | Yingrong Zheng Hao Dong Marko Milojevic |
| author_sort | Yingrong Zheng |
| collection | DOAJ |
| description |
The purpose of this article is to examine the impact of RMB exchange rate fluctuations on the strategic decisions of Chinese companies in the context of their export activity in the foreign market. The research methodology is based on integrated annual customs data for the period 2014–2021 and econometric analysis. The upward fluctuations in the level of the real effective exchange rate of the RMB encourage companies to withdraw from foreign markets and lead to a significant slowdown in companies’ export market entry. At the same time, companies with foreign capital are able to cope with currency risks to a much greater extent than companies with state and private participation. The analysis of company characteristics based on the principle of differentiation shows that company performance, profit volume, business scale, and export experience of a company can lead to a delay in the favorable effect of RMB appreciation for companies leaving export markets. This article provides valuable guidance for companies on strategies to avoid currency risks and make effective management decisions in the context of exports.
First published online 18 January 2024
|
| first_indexed | 2024-03-08T13:07:17Z |
| format | Article |
| id | doaj.art-61de1e0bc7824a929140e82e1b49d3f1 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-03-08T13:07:17Z |
| publishDate | 2023-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-61de1e0bc7824a929140e82e1b49d3f12024-01-18T16:23:22ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332023-12-0124610.3846/jbem.2023.20654RMB resilience strategies to drive business performance amid the global crisisYingrong Zheng0Hao Dong1Marko Milojevic2Department of Economics, Sejong University, Seoul, South KoreaDepartment of Economic Management, Shandong Vocational College of Science and Technology, Weifang, ChinaDepartment of Accounting and Audit, Singidunum University, Belgrade, Serbia The purpose of this article is to examine the impact of RMB exchange rate fluctuations on the strategic decisions of Chinese companies in the context of their export activity in the foreign market. The research methodology is based on integrated annual customs data for the period 2014–2021 and econometric analysis. The upward fluctuations in the level of the real effective exchange rate of the RMB encourage companies to withdraw from foreign markets and lead to a significant slowdown in companies’ export market entry. At the same time, companies with foreign capital are able to cope with currency risks to a much greater extent than companies with state and private participation. The analysis of company characteristics based on the principle of differentiation shows that company performance, profit volume, business scale, and export experience of a company can lead to a delay in the favorable effect of RMB appreciation for companies leaving export markets. This article provides valuable guidance for companies on strategies to avoid currency risks and make effective management decisions in the context of exports. First published online 18 January 2024 https://journals.vilniustech.lt/index.php/JBEM/article/view/20654businessforeign exchange marketexportmodellingmoney supplystrategy |
| spellingShingle | Yingrong Zheng Hao Dong Marko Milojevic RMB resilience strategies to drive business performance amid the global crisis Journal of Business Economics and Management business foreign exchange market export modelling money supply strategy |
| title | RMB resilience strategies to drive business performance amid the global crisis |
| title_full | RMB resilience strategies to drive business performance amid the global crisis |
| title_fullStr | RMB resilience strategies to drive business performance amid the global crisis |
| title_full_unstemmed | RMB resilience strategies to drive business performance amid the global crisis |
| title_short | RMB resilience strategies to drive business performance amid the global crisis |
| title_sort | rmb resilience strategies to drive business performance amid the global crisis |
| topic | business foreign exchange market export modelling money supply strategy |
| url | https://journals.vilniustech.lt/index.php/JBEM/article/view/20654 |
| work_keys_str_mv | AT yingrongzheng rmbresiliencestrategiestodrivebusinessperformanceamidtheglobalcrisis AT haodong rmbresiliencestrategiestodrivebusinessperformanceamidtheglobalcrisis AT markomilojevic rmbresiliencestrategiestodrivebusinessperformanceamidtheglobalcrisis |