Topic
Exchange rate
About: Exchange rate is a research topic. Over the lifetime, 47255 publications have been published within this topic receiving 944563 citations. The topic is also known as: foreign-exchange rate & forex rate.
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Papers
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TL;DR: In this paper, a broad sample of firms in eight countries over an eighteen-year period was studied and it was found that firm-level and industry-level share values are significantly influenced by exchange rates and that significant firm, industry and country-specific differences remain even as financial markets become more and more integrated.
Abstract: Finance theory suggests that changes in exchange rates should have little influence on asset prices in a world with integrated capital markets. Indeed, the existing literature examining the relationship between international stock prices and exchange rates finds little evidence of systematic exchange rate exposure. We argue in this paper that the absence of evidence may be due to restrictions imposed on the sample of data and the empirical specifications used in previous studies. We study a broad sample of firms in eight countries over an eighteen-year period. We find that firm-level and industry-level share values are significantly influenced by exchange rates. Further, we do not find evidence that exchange rate exposure is falling (or becoming less statistically significant) over time. Our results suggest that significant firm, industry and country-specific differences remain even as financial markets become more and more "integrated".
223 citations
TL;DR: In this paper, the macroeconomic determinants of nonperforming loans (NPLs) across 75 countries during the past decade were studied using a novel panel data set and the following variables were found to significantly affect NPL ratios: real GDP growth, share prices, the exchange rate, and the lending interest rate.
Abstract: Using a novel panel data set we study the macroeconomic determinants of nonperforming loans (NPLs) across 75 countries during the past decade. According to our dynamic panel estimates, the following variables are found to significantly affect NPL ratios: real GDP growth, share prices, the exchange rate, and the lending interest rate. In the case of exchange rates, the direction of the effect depends on the extent of foreign exchange lending to unhedged borrowers which is particularly high in countries with pegged or managed exchange rates. In the case of share prices, the impact is found to be larger in countries which have a large stock market relative to GDP. These results are robust to alternative econometric specifications.
223 citations
Book•
01 Jan 2014
TL;DR: Exchange Rates and International Finance as discussed by the authors provides a guide to the causes and consequences of exchange rate fluctuations, with particular emphasis given to the contributions of modern finance theory, and the orientation of the book is towards exchange rate determination.
Abstract: Exchange Rates and International Finance provides a guide to the causes and consequences of exchange rate fluctuations. The orientation of the book is towards exchange rate determination with particular emphasis given to the contributions of modern finance theory.
223 citations
TL;DR: In this article, the authors investigate why and how the financial conditions of developing and emerging market countries (peripheral countries) can be affected by the movements in the center economies (the U.S., Japan, the Eurozone, and China).
223 citations
TL;DR: In this paper, the effect of exchange rate uncertainty on the growth of agricultural trade as compared to other sectors was explored. And the negative impact of uncertainty on agricultural trade has been more significant compared with other sectors.
Abstract: Using a sample of bilateral trade flows across ten developed countries between 1974 and 1995, this article explores the effect of exchange rate uncertainty on the growth of agricultural trade as compared to other sectors. Based on a gravity model that controls for other factors likely to determine bilateral trade, the results show that real exchange rate uncertainty has had a significant negative effect on agricultural trade over this period. Moreover, the negative impact of uncertainty on agricultural trade has been more significant compared to other sectors.
223 citations