Foreign Exchange Rate Exposure of Automotive Makers: Case Study
(2010)Department of Business Administration
- Abstract
- Purpose: The aim of our paper is try to find out the relationship between exchange rate and corporate value. We are going to study the impact of exchange rate on automakers?value in automobile industry. Theoretical perspective: The theoretical framework mainly involves prior research in the area of exchange rate exposure and corporate value. Further, the relationship between corporate performance and market performance is studied. Methodology: Colleting data for four largest automakers in the world as well as exchange rate and stock market index to run regression to study their relation ship. Unconditional Spillover model is used. Results: Five out of nine exchange rates we selected are significant for corporate stock price but weakly... (More)
- Purpose: The aim of our paper is try to find out the relationship between exchange rate and corporate value. We are going to study the impact of exchange rate on automakers?value in automobile industry. Theoretical perspective: The theoretical framework mainly involves prior research in the area of exchange rate exposure and corporate value. Further, the relationship between corporate performance and market performance is studied. Methodology: Colleting data for four largest automakers in the world as well as exchange rate and stock market index to run regression to study their relation ship. Unconditional Spillover model is used. Results: Five out of nine exchange rates we selected are significant for corporate stock price but weakly impact on corporate stock price. Conclusion: The impact of foreign exchange rate on corporate stock price is weak or insignificant. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1578922
- author
- Liu, Peng and Zhao, Yuanyuan
- supervisor
- organization
- year
- 2010
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Management of enterprises, GARCH Model, Spillover model, Stock market index, Stock price, exchange rate, Företagsledning, management
- language
- Swedish
- id
- 1578922
- date added to LUP
- 2010-01-15 00:00:00
- date last changed
- 2012-04-02 17:54:16
@misc{1578922,
abstract = {{Purpose: The aim of our paper is try to find out the relationship between exchange rate and corporate value. We are going to study the impact of exchange rate on automakers?value in automobile industry. Theoretical perspective: The theoretical framework mainly involves prior research in the area of exchange rate exposure and corporate value. Further, the relationship between corporate performance and market performance is studied. Methodology: Colleting data for four largest automakers in the world as well as exchange rate and stock market index to run regression to study their relation ship. Unconditional Spillover model is used. Results: Five out of nine exchange rates we selected are significant for corporate stock price but weakly impact on corporate stock price. Conclusion: The impact of foreign exchange rate on corporate stock price is weak or insignificant.}},
author = {{Liu, Peng and Zhao, Yuanyuan}},
language = {{swe}},
note = {{Student Paper}},
title = {{Foreign Exchange Rate Exposure of Automotive Makers: Case Study}},
year = {{2010}},
}