Measuring macroeconomic exposure: The case of Volvo Cars
(1995) In European Financial Management 1(3). p.241-263- Abstract
- Volvo Cars' economic exposure to exchange rates and other macroeconomic variables is estimated using quarterly cash flows as the firm's target variable. We discuss first several issues relating to management's view of the macroeconomic environment, as well as the firm's objective and structure. These issues must be addressed before multiple regression analysis can be implemented with the purpose of estimating exposures. the use of cash flow exposure coefficients for evaluating exposure and choosing currency denomination of liabilities is illustrated, and an out-of-sample analysis of the estimated exposure coefficients is carried out.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1514016
- author
- Oxelheim, Lars LU and Wihlborg, Clas
- organization
- publishing date
- 1995
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- economic and cash flow corporate exposure, exchange rate risk, macroeconomic exposure management
- in
- European Financial Management
- volume
- 1
- issue
- 3
- pages
- 241 - 263
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:84982596429
- ISSN
- 1354-7798
- DOI
- 10.1111/j.1468-036X.1995.tb00019.x
- language
- English
- LU publication?
- yes
- id
- 4c16e270-5a4f-4731-9cd0-b3a01520f82d (old id 1514016)
- date added to LUP
- 2016-04-04 14:00:00
- date last changed
- 2021-04-04 05:19:31
@article{4c16e270-5a4f-4731-9cd0-b3a01520f82d, abstract = {{Volvo Cars' economic exposure to exchange rates and other macroeconomic variables is estimated using quarterly cash flows as the firm's target variable. We discuss first several issues relating to management's view of the macroeconomic environment, as well as the firm's objective and structure. These issues must be addressed before multiple regression analysis can be implemented with the purpose of estimating exposures. the use of cash flow exposure coefficients for evaluating exposure and choosing currency denomination of liabilities is illustrated, and an out-of-sample analysis of the estimated exposure coefficients is carried out.}}, author = {{Oxelheim, Lars and Wihlborg, Clas}}, issn = {{1354-7798}}, keywords = {{economic and cash flow corporate exposure; exchange rate risk; macroeconomic exposure management}}, language = {{eng}}, number = {{3}}, pages = {{241--263}}, publisher = {{Wiley-Blackwell}}, series = {{European Financial Management}}, title = {{Measuring macroeconomic exposure: The case of Volvo Cars}}, url = {{http://dx.doi.org/10.1111/j.1468-036X.1995.tb00019.x}}, doi = {{10.1111/j.1468-036X.1995.tb00019.x}}, volume = {{1}}, year = {{1995}}, }