Exchange Rate Exposure and Competition

Journal of Financial economics 59 (2001) 441}475 Exchange act in flick and competition: evidence from the self-propelling industry Rohan Williamson* McDonough initiate of Business, Geor turnown University, Washington, DC 20057, USA received 20 April 1998; received in revise form 6 January 2000 Abstract This study examines the e! el electroshockroshock of real collect sum up changes on multinational rms and incorpo order the e!ect of intra-industry competition on the notification between modify reckons and rm value. To test the relation much e!ectively, tests are conducted victimisation a sample of automotive rms from the United conjures and Japan. conformable with suppositious predictions, in that location is signicant flick to exchange rate shocks. Moreover, there is evidence of time-variation in exchange rate moving picture, which is unchanging with changes in the competitive environment at bottom the industry. Finally, evidence is presented that is coherent with different sales being a major determinative of scene and the e!ectiveness of operational hedgerow through foreign production. 2001 Elsevier acquisition S.A. All rights reserved.

JEL classixcation: F31; G30; G39 Keywords: Exchange rate exposure; risk of exposure management; Currency exposure; world(prenominal) corporate nance I would like to give thanks Bernadette Minton, Tim Opler, Gordon Bodnar, Steve Buser, arse Gri$n, Kathleen Kahle, G. Andrew Karolyi, Sara Moeller, Lee Pinkowitz, Frederik Schlingemann, Paul Schultz, G. William Schwert (the editor), Ralph Walkling, and Sonya Williams-Stanton for their helpful comments and suggestions. I am especially grateful for the invaluable comments and suggestions from Rene Stulz and H the referee. Also, I would like to thank seminar participants at the 1997 Western birth Association meetings, The Third International Finance Conference at Georgia Institute of Technology, Ohio State University, Arizona State University, Georgetown University, Depaul University, Texas A&M University, Babson College, and the Universities of...If you want to get a full essay, trap it on our website: Ordercustompaper.com

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