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We examine the relation between exchange rate variability and stock return volatility for U.S. multinational firms and decompose this relation into components of systematic and diversifiable risk. Focusing on two five-year periods around the 1973 switch from fixed to floating exchange rates, we...
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This paper examines the behavior of the regret-averse multinational firm under exchange rate uncertainty. The … less, sells more domestically, and export less abroad under uncertainty than under certainty holds if the multinational … domestically, and export more abroad under uncertainty than under certainty, particularly when the multinational firm is …
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This study assesses the impact of exchange rate variability on the riskiness of U.S. multinational firms by examining the relation between exchange rate variability and stock return volatility and by decomposing this relation into components of systematic and diversifiable risk. Focusing on two...
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