Trade and exposure of Eastern European multinationals

Aline Muller; Willem F.C. Verschoor

doi:https://doi.org/10.1016/j.ememar.2006.12.003

Trade and exposure of Eastern European multinationals

Aline Muller, Willem F.C. Verschoor

Research output: Contribution to journal › Article › peer-review

Abstract

We find that about 19% of our sample of 149 Eastern European multinationals’ stock returns experienced economically significant exposure effects to the U.S. dollar for the period January 2000 to December 2004. The average exposure of the highly net exporting (importing) industry portfolios is positive (negative). Foreign exposure is found to increase with the evolution of net positions in U.S. foreign trade and with the industries’ degree of openness towards U.S. foreign markets. We also find that foreign exposure decreases with firm size.

Original language	English
Pages (from-to)	218-229
Number of pages	12
Journal	Emerging Markets Review
Volume	8
Issue number	3
DOIs	https://doi.org/10.1016/j.ememar.2006.12.003
Publication status	Published - Sept 2007
Externally published	Yes

Keywords

Exchange risk
Emerging markets
Foreign trade
Multinational firms

Access to Document

https://doi.org/10.1016/j.ememar.2006.12.003

https://www.sciencedirect.com/science/article/pii/S1566014107000088

Cite this

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title = "Trade and exposure of Eastern European multinationals",

abstract = "We find that about 19% of our sample of 149 Eastern European multinationals{\textquoteright} stock returns experienced economically significant exposure effects to the U.S. dollar for the period January 2000 to December 2004. The average exposure of the highly net exporting (importing) industry portfolios is positive (negative). Foreign exposure is found to increase with the evolution of net positions in U.S. foreign trade and with the industries{\textquoteright} degree of openness towards U.S. foreign markets. We also find that foreign exposure decreases with firm size.",

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KW - Exchange risk

KW - Emerging markets

KW - Foreign trade

KW - Multinational firms

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