Exposure to foreign exchange rate risk: a review of empirical evidences

Exposure to foreign exchange rate risk has become an increasingly important issue to investors and financial managers identical with the globalization of markets, and particularly in the wake of the events that occurred in the Asian financial markets. The impact of foreign exchange rate exposure o...

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Chi tiết về thư mục
Những tác giả chính: Omar, Abdullah, Taufil Mohd, Kamarun Nisham, Ahmad, Norzalina
Định dạng: Bài viết
Ngôn ngữ:English
Được phát hành: 2017
Những chủ đề:
Truy cập trực tuyến:https://repo.uum.edu.my/id/eprint/26252/1/JIFM%202%205%202017%2079%2091.pdf
Miêu tả
Tóm tắt:Exposure to foreign exchange rate risk has become an increasingly important issue to investors and financial managers identical with the globalization of markets, and particularly in the wake of the events that occurred in the Asian financial markets. The impact of foreign exchange rate exposure on the value of the firm has been the subject of empirical literature for several decades. In recent times some empirical literature has also emerged. This study reviews the studies that investigate the exposure to currency risk of different economies. Both developing and developed economies has been subject to this study. It is concluded that most of the emerging and developing economies are exposed to higher level of foreign currency exposure. This is due to high level of openness and large amount of import and exports. In contrast, almost all closed and developed economies exhibits low level of exposure due to low amount of import and exports.