The Effects of Exchange Rate Fluctuations on Corporations and Evidence from Turkey
This study analyzed the effects of exchange rate fluctuations on firms. To this end, the effects of exchange rate fluctuations on the performance of publicly traded firms which are registered to Istanbul Stock Exchange (ISE) are investigated. This relationship is analyzed through regression models of both Adler and Dumas (1984) and Jorion (1990) using the data for the period between 1997 and 2007 on 55 publicly traded firms. The ampirical results show that the exchange rate fluctuations affect firm’s performance with some time lag. Morever, the effect of exchange rate fluctuations on firm performance, negatively depends on the share of export in total sales. Firms with higher export share are more vulnerable to exchange rate fluctuations.
Year of publication: |
2013
|
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Authors: | MUTLUAY, Ali Hakan ; TURABOGLU, Tuncay Turan |
Published in: |
Journal of BRSA Banking and Financial Markets. - Bankacılık Düzenleme ve Denetleme Kurumu. - Vol. 7.2013, 1, p. 59-78
|
Publisher: |
Bankacılık Düzenleme ve Denetleme Kurumu |
Subject: | Foreign Exchange | Foreign Exc. Exposures | Corporate Performance |
Saved in:
freely available
Extent: | application/pdf |
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Type of publication: | Article |
Classification: | F31 - Foreign Exchange ; G10 - General Financial Markets. General ; G20 - Financial Institutions and Services. General ; G32 - Financing Policy; Capital and Ownership Structure |
Source: |
Persistent link: https://www.econbiz.de/10010700718
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