Exchange Rate Exposures and Strategies of Industrial Companies: An Empirical Study
Version of Record online: 27 APR 2001
Copyright © 2001 John Wiley & Sons, Inc.
Thunderbird International Business Review
Volume 43, Issue 3, pages 379–395, May 2001
How to Cite
Aabo, T. (2001), Exchange Rate Exposures and Strategies of Industrial Companies: An Empirical Study. Thunderbird Int'l Bus Rev, 43: 379–395. doi: 10.1002/tie.1003
- Issue online: 27 APR 2001
- Version of Record online: 27 APR 2001
This article investigates empirically the potential and actual exchange rate exposure strategies of industrial companies in relation to identifying and quantifying the neutral financial positions in an optimal hedging strategy. A stock market approach as a potential remedy is analyzed but found to be statistically troublesome and fundamentally flawed. Part of the diversity in actual strategies found in this article reflects different competitive environments, while another part indicates that the companies have not yet reached a systematic risk management of ongoing competitive exposures. © 2001 John Wiley & Sons, Inc.