search query: @author Muller, A. / total: 9
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| Author: | Muller, A. Verschoor, W.F.C. |
| Title: | European foreign exchange risk exposure |
| Journal: | European Financial Management
2006 : MAR, VOL. 12:2, p. 195-220 |
| Index terms: | financial markets stock markets exchange rates currency risk hedging policy multinational companies Europe |
| Language: | eng |
| Abstract: | It is found that about 13 percent of the study's sample of 817 European multinational firms experienced economically significant exposure (here as: exp./exps.) effects to the Japanese yen, 14 percent to the U.S. dollar and 22 percent to the U.K. pound. This evidence substantially differs from the U.S. experience suggesting that a depreciating (appreciating) euro against foreign currencies has a net negative (positive) impact on European stock returns. Short-term exp. seems to be relatively well hedged, where considerable evidence of long-term exp. is found. Firms with weak liquidity positions tend to have smaller exps. Foreign exp. is found to increase with firm size. |
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