2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size
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| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2023-10-29 |
| format | General Document |
| id | 15576 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | FOREIGN EXCHANGE EXPOSURE AND FIRM VALUE NEXUS_ ROLE OF CURRENCY DERIVATIVES AND FIRM SIZE (PHD_2023).pdf |
| person | Mehwish Riaz |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15576 |
| sourcemedia | Server storage Scanned document |
| spelling | 15576 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15576 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 3.0.10; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 2023-10-29 299 FOREIGN EXCHANGE EXPOSURE AND FIRM VALUE NEXUS_ ROLE OF CURRENCY DERIVATIVES AND FIRM SIZE (PHD_2023).pdf Foreign Exchange Exposure Firm Value Nexus Role Of Currency Derivatives Firm Size Foreign exchange risk Currency derivatives Corporations — Finance Business enterprises — Valuation Currency fluctuations — Economic aspects 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size Many businesses were compelled to participate in international trade because of the growing globalisation phenomenon, putting their financial flow at risk. Therefore, exposure to foreign exchange is a significant risk for businesses doing business internationally. There has been considerable research on the effects of exchange rate volatility on business value, but the results have been contradictory, calling for more study. The purpose of this study is to evaluate the relationship between foreign exchange exposure and firm value as well as the part that currency derivatives and firm size play in it. The study makes use of a sample of 90 non-financial companies, including 55 export- and 35 import-oriented companies that were listed on the Pakistan Stock Exchange (PSE) between 2007 and 2018. The GMM has been used to assess the econometric models. The findings show that foreign exchange exposure significantly lowers business value. However, the detrimental effects of foreign exchange exposure on firm value can be reduced by the use of currency derivatives. Further research reveals that the association between firm value and foreign exchange exposure is moderated by firm size. Given that they greatly boost corporate value and mitigate the effects of foreign exchange exposure, the study's findings suggest using derivative instruments for risk management. Companies that use derivatives have been found to reduce risk more than those who do not. The weak form of capital markets in Pakistan and the underdevelopment of capital markets in Pakistan are the driving forces behind this study. These factors have an impact on the relationship between foreign exchange exposure and firm value and can aid businesses in managing their foreign exchange risk exposure. The study makes a substantial contribution to knowledge by investigating the understudied effect of firm size and currency derivatives in this relationship. The results emphasise the significance of firm size and currency derivatives in controlling foreign exchange exposure and raising firm value. The study's practical ramifications include the ability for multinational corporations to control their foreign exchange exposure and increase their value through the use of currency derivatives. The findings can help regulators and policymakers make decisions about matters pertaining to foreign exchange risk management. Overall, this study adds to the body of knowledge on managing foreign currency risk and offers insights into the variables influencing the relationship between foreign exchange exposure and business value. Mehwish Riaz Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| state | Terengganu |
| subject | Foreign exchange risk Currency derivatives Corporations — Finance Business enterprises — Valuation Currency fluctuations — Economic aspects Dissertations, Academic |
| summary | Many businesses were compelled to participate in international trade because of the growing globalisation phenomenon, putting their financial flow at risk. Therefore, exposure to foreign exchange is a significant risk for businesses doing business internationally. There has been considerable research on the effects of exchange rate volatility on business value, but the results have been contradictory, calling for more study. The purpose of this study is to evaluate the relationship between foreign exchange exposure and firm value as well as the part that currency derivatives and firm size play in it. The study makes use of a sample of 90 non-financial companies, including 55 export- and 35 import-oriented companies that were listed on the Pakistan Stock Exchange (PSE) between 2007 and 2018. The GMM has been used to assess the econometric models. The findings show that foreign exchange exposure significantly lowers business value. However, the detrimental effects of foreign exchange exposure on firm value can be reduced by the use of currency derivatives. Further research reveals that the association between firm value and foreign exchange exposure is moderated by firm size. Given that they greatly boost corporate value and mitigate the effects of foreign exchange exposure, the study's findings suggest using derivative instruments for risk management. Companies that use derivatives have been found to reduce risk more than those who do not. The weak form of capital markets in Pakistan and the underdevelopment of capital markets in Pakistan are the driving forces behind this study. These factors have an impact on the relationship between foreign exchange exposure and firm value and can aid businesses in managing their foreign exchange risk exposure. The study makes a substantial contribution to knowledge by investigating the understudied effect of firm size and currency derivatives in this relationship. The results emphasise the significance of firm size and currency derivatives in controlling foreign exchange exposure and raising firm value. The study's practical ramifications include the ability for multinational corporations to control their foreign exchange exposure and increase their value through the use of currency derivatives. The findings can help regulators and policymakers make decisions about matters pertaining to foreign exchange risk management. Overall, this study adds to the body of knowledge on managing foreign currency risk and offers insights into the variables influencing the relationship between foreign exchange exposure and business value. |
| title | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| title_full | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| title_fullStr | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| title_full_unstemmed | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| title_short | 2023_Foreign Exchange Exposure and Firm Value Nexus: Role of Currency Derivatives and Firm Size |
| title_sort | 2023_foreign exchange exposure and firm value nexus: role of currency derivatives and firm size |