DOES THE MARKET EVALUATE FIRM’S FX RISK MANAGEMENT? -- EVIDENCE FROM THE KOREAN STOCK MARKET --
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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.
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.
참고문헌 (26)
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