The Impact of Exchange Rate Movements on Firm Value in Visegrad Countries

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F17%3A00010986" target="_blank" >RIV/47813059:19520/17:00010986 - isvavai.cz</a>

Výsledek na webu

<a href="https://acta.mendelu.cz/65/6/2105/" target="_blank" >https://acta.mendelu.cz/65/6/2105/</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/actaun201765062105" target="_blank" >10.11118/actaun201765062105</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The Impact of Exchange Rate Movements on Firm Value in Visegrad Countries

Popis výsledku v původním jazyce

Company's involvement in global activities through international trade is the primary source of their foreign exchange exposure. Many empirical studies suggest the negative impact of uncertainty about the development of the exchange rate on cash flow and profitability of companies, and thus their market values. Some economic studies show that foreign revenues are positively correlated with the exchange rate exposure and in a short period, currency depreciation negatively affects the market value of listed companies. On the other hand, there are studies that show no statistically significant links between the value of the companies and exchange rates. The aim of this paper is to evaluate the effect of exchange rates on the value of companies listed on stock exchanges in the Visegrad countries. Paper applies Jorion's model and panel data regression for the sample period 2002 - 2016. Estimations for the whole period revealed negative relationship between exchange rate and value of stock c ompanies. The highest exposure is observed in case of Hungary and Czechia. Positive tendency can be seen in comparison of pre-crisis and post-crisis period. Except the case of Hungary, all markets showed decreased exchange rate exposure in time.

Název v anglickém jazyce

The Impact of Exchange Rate Movements on Firm Value in Visegrad Countries

Popis výsledku anglicky

Company's involvement in global activities through international trade is the primary source of their foreign exchange exposure. Many empirical studies suggest the negative impact of uncertainty about the development of the exchange rate on cash flow and profitability of companies, and thus their market values. Some economic studies show that foreign revenues are positively correlated with the exchange rate exposure and in a short period, currency depreciation negatively affects the market value of listed companies. On the other hand, there are studies that show no statistically significant links between the value of the companies and exchange rates. The aim of this paper is to evaluate the effect of exchange rates on the value of companies listed on stock exchanges in the Visegrad countries. Paper applies Jorion's model and panel data regression for the sample period 2002 - 2016. Estimations for the whole period revealed negative relationship between exchange rate and value of stock c ompanies. The highest exposure is observed in case of Hungary and Czechia. Positive tendency can be seen in comparison of pre-crisis and post-crisis period. Except the case of Hungary, all markets showed decreased exchange rate exposure in time.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

ISSN

1211-8516

e-ISSN

—

Svazek periodika

65

Číslo periodika v rámci svazku

6

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

7

Strana od-do

2105-2111

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85038818621