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Exchange Rate Exposure: A f irm and Industry Level Investigation

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  • Sadik Cukur

Abstract

Exchange rate exposure has become one of the most important subjects in international finance area after collapsing fixed exchange rate system. Several studies have been devoted to explore the relationship between exchange rate changes and the value of the firm. This study aims to investigate this relationship in the Istanbul Stock Exchange Market. The results of univariate model and multivariate models indicate that 30 % of the firms are affected negatively against exchange rate changes. The results are very sensitive to the chosen model and sub-period test results imply that exposure has a time-varying character.

Suggested Citation

  • Sadik Cukur, 2008. "Exchange Rate Exposure: A f irm and Industry Level Investigation," Istanbul Stock Exchange Review, Research and Business Development Department, Borsa Istanbul, vol. 10(38), pages 25-42.
    • Handle: RePEc:bor:iserev:v:10:y:2008:i:38:p:25-42
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    File URL: http://www.borsaistanbul.com/datum/imkbdergi/EN/ISE_Review_38.pdf
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    References listed on IDEAS

    as
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    3. Edwin M. Truman, 2003. "Inflation Targeting in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 346, January.
    4. Carare, Alina & Stone, Mark R., 2006. "Inflation targeting regimes," European Economic Review, Elsevier, vol. 50(5), pages 1297-1315, July.
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    More about this item

    Keywords

    Exchange Rate Exposure; Emerging Market;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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