Despite the growing international importance of Chinese economy, the currency risk of Chinese firms has received little attention. This paper documents Chinese exporters are exposed to significant currency risk to ASEAN countries and firms in three industries are adversely affected when Yuan...

Unlike prior studies on foreign exchange risk that have focused on multinational companies, this paper documents that domestic companies face significant foreign exchange exposure. Indeed, we document that on average domestic company foreign exchange exposure is not significantly different from...

It has been suggested that prior studies that have puzzlingly found forward rates to be inefficient and biased forecasts of future spot rates may be limited by inadequate statistical methodologies. Using an improved statistical methodology that accounts for both non-stationarity and...