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Does the Market Evaluate Firm`s FX Risk Management? -Evidence from the Korean Stock Market-

Author

Listed:
  • Doyeon Kim

    (KAIST Graduate School of Management)

  • Taeyoon Sung

    (Yonsei University)

Abstract

We examine the influence of FX Risk on the Korean stock market. We find that, except the period when the Korean government maintained the fixed exchange rate regime, FX Risk had a significant influence on firm value in the Korean stock market. FX Risk exposure turns out to be significantly different among firms. Particularly, we show that large firms tend to be more sensitive to FX Risk and have more incentives to control the risk.

Suggested Citation

  • Doyeon Kim & Taeyoon Sung, 2007. "Does the Market Evaluate Firm`s FX Risk Management? -Evidence from the Korean Stock Market-," Korean Economic Review, Korean Economic Association, vol. 23, pages 243-266.
    • Handle: RePEc:kea:keappr:ker-200712-23-2-02
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign Exchange; FX Risk; Risk Management; Firm Size; Stock Market;
    All these keywords.

    JEL classification:

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

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