Résumé
We find that about 13% of our sample of 817 European multinational firms experienced economically significant exposure effects to the Japanese yen, 14% to the US dollar and 22% to the UK pound. Our evidence differs substantially from the US experience and is robust across sub-sample periods, suggesting that a depreciating (appreciating) euro against foreign currencies has a net negative (positive) impact on European stock returns. Short-term exposure seems to be relatively well hedged, where considerable evidence of long-term exposure is found. Firms with weak liquidity positions tend to have smaller exposures. Foreign exposure is found to increase with firm size.
langue originale | Anglais |
---|---|
Pages (de - à) | 195-220 |
Nombre de pages | 26 |
journal | European Financial Management |
Volume | 12 |
Numéro de publication | 2 |
Les DOIs | |
état | Publié - 2006 |
Modification externe | Oui |