Journal ArticleDOI
Foreign exchange risk exposure: Survey and suggestions
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TLDR
A review of exchange exposure literature can be found in this paper, with particular reference to recent developments, focusing 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.About:
This article is published in Journal of Multinational Financial Management.The article was published on 2006-10-01. It has received 141 citations till now. The article focuses on the topics: Foreign exchange risk & Exchange rate.read more
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International Competition and Exchange Rate Shocks: A Cross-Country Industry Analysis of Stock Returns
John M. Griffin,René M. Stulz +1 more
TL;DR: In this paper, the authors explored the validity of this view using weekly stock return data on 320 industry pairs in six countries from 1975 to 1997, and found that common shocks to industries across countries" are more important than competitive shocks.
Book
Investment in capital markets
TL;DR: In this paper, the authors discuss the pros and cons of the financial capital investment in the capital markets, discussing the sophisticated investment concepts and techniques in the simple understandable readable general format language.
Journal ArticleDOI
Openness, hedging incentives and foreign exchange exposure: A firm-level multi-country study
Elaine Hutson,Simon Stevenson +1 more
TL;DR: In this article, the authors show that firms in open economies bear higher levels of exchange exposure than those in more closed economies, and that strong corporate governance environment is associated with reduced firm-level exchange exposure.
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Offshore activities and financial vs operational hedging
Gerard Hoberg,S. Katie Moon +1 more
TL;DR: The authors proposed an explanation based on illiquidity and the unique advantages of operational hedges and used 10-K filings to construct dynamically updated text-based measures of the offshore sale of output, purchase of input, and ownership of assets.
Journal ArticleDOI
Offshore Activities and Financial vs Operational Hedging
Gerard Hoberg,S. Katie Moon +1 more
TL;DR: In this paper, the authors use 10-K filings to construct dynamically updated text-based measures of the offshore sale of output, purchase of input, and ownership of assets, and find that firms use FX derivatives when they are liquid and generally available.
References
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Journal ArticleDOI
Multifactor Explanations of Asset Pricing Anomalies
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the authors show that many of the CAPM average-return anomalies are related, and they are captured by the three-factor model in Fama and French (FF 1993).
Journal ArticleDOI
Economic Forces and the Stock Market
TL;DR: In this paper, the authors test whether innovations in macroeconomic variables are risks that are rewarded in the stock market, and they find that these sources of risk are significantly priced and neither the market portfolio nor aggregate consumption are priced separately.
Journal ArticleDOI
Managerial discretion and optimal financing policies
TL;DR: In this paper, the authors analyze a firm owned by atomistic shareholders who observe neither cash flows nor management's investment decisions and find that management is forced to invest too little when cash flow is low and too much when it is high.
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Empirical exchange rate models of the seventies: Do they fit out of sample?
Richard Meese,Kenneth Rogoff +1 more
TL;DR: The authors compared the performance of various structural and time series exchange rate models, and found that a random walk model performs as well as any estimated model at one to twelve month horizons for the dollar/pound, dollar/mark, dollar /yen and trade-weighted dollar exchange rates.
Posted Content
Risk Management: Coordinating Corporate Investment and Financing Policies
Kenneth A. Froot,Kenneth A. Froot,David S. Scharfstein,David S. Scharfstein,Jeremy C. Stein,Jeremy C. Stein +5 more
TL;DR: In this paper, the authors develop a general framework for analyzing corporate risk management policies and argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.