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Exchange rate exposure among European firms: evidence from France, Germany and the UK.
- Source :
- Accounting & Finance; Nov2005, Vol. 45 Issue 3, p479-497, 19p, 5 Charts
- Publication Year :
- 2005
-
Abstract
- We investigate the pre-Euro exposure to exchange rate changes of large firms in the UK, France and Germany. We find that the exchange rate sensitivity is considerably stronger than previously thought. In all three countries, firms typically gain value when their local currency depreciates against the US dollar, yet most UK firms lose value when sterling depreciates against the European currency unit. We also document the existence of an intriguing intervalling effect in the measurement of exchange rate exposure, which suggests that share prices might exhibit a delayed response to information, and prevents us from making robust generalizations concerning other exchange rate sensitivities. [ABSTRACT FROM AUTHOR]
- Subjects :
- FOREIGN exchange rates
BUSINESS enterprises
Subjects
Details
- Language :
- English
- ISSN :
- 08105391
- Volume :
- 45
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Accounting & Finance
- Publication Type :
- Academic Journal
- Accession number :
- 18842613
- Full Text :
- https://doi.org/10.1111/j.1467-629X.2005.00154.x