Does internationalisation increase exchange rate exposure?- Evidence from Chinese financial firms
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
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INVESTIGACIONMetadatos
Título
Does internationalisation increase exchange rate exposure?- Evidence from Chinese financial firmsFecha de publicación
2018-03Editor
ElsevierCita bibliográfica
CUESTAS, Juan Carlos; HUANG, Ying Sophie; TANG, Bo. Does internationalisation increase exchange rate exposure?-Evidence from Chinese financial firms. International Review of Financial Analysis, 2018, 56: 253-263.Tipo de documento
info:eu-repo/semantics/articleVersión de la editorial
https://www.sciencedirect.com/science/article/pii/S1057521918300735Versión
info:eu-repo/semantics/acceptedVersionPalabras clave / Materias
Resumen
This study investigates both the symmetric and asymmetric exchange rate exposures of Chinese financial firms in the context of an accelerated pace of RMB internationalisation. We find that an increasing number of ... [+]
This study investigates both the symmetric and asymmetric exchange rate exposures of Chinese financial firms in the context of an accelerated pace of RMB internationalisation. We find that an increasing number of Chinese financial firms are exposed to negative symmetric effects from the change in the trade weighted effective exchange rate. The evidence concerning asymmetries shows that after 2009 negative exchange rate shocks (a weaker RMB) have a stronger effect on exposures than positive shocks (a stronger RMB). Changes in the bilateral exchange rate also have a significant impact on firm returns, given the importance of the USD in the effective exchange rate. Further, the empirical analysis reveals that exchange rate exposures are associated with firm level characteristics including total assets, earnings per share, net cash flows, investment incomes, total liabilities and firm size. Finally, we suggest that domestic and foreign stakeholders need to pay close attention to the movement of the Yuan's exchange rate before it becomes completely convertible. [-]
Proyecto de investigación
National Natural Science Foundation of China (grant no. 71573228) ; ‘Programa Estatal de Fomento de la Investigación, Científica y Técnica de Excelencia, Subprograma Estatal de Generación de Conocimiento, Ministerio de Economía, Industria y Competitividad (MINEIC), Gobierno de España, 2018–2020’ ( ECO2017-83255-C3-3-P)Derechos de acceso
© 2018 Elsevier Inc. All rights reserved.
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info:eu-repo/semantics/openAccess
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info:eu-repo/semantics/openAccess
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