The Relationship between Foreign Exchange Exposure and Corporate Value —Evidences from Listed Taiwan Information and Electronic Companies

• Main Authors: Hsin-Ying Lin, 林昕穎
• Other Authors: Hsin-Hong Kang
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/95138506319694346580

碩士 === 國立成功大學 === 企業管理學系碩博士班 === 94 === Nowadays, the volatility of the NT dollar, the prevalence of derivatives, and the influence of foreign exchange rates on corporate value is much different from before. The purpose of this thesis is to analyze the foreign exchange exposure of listed Taiwanese information and electronic companies and try to determine whether using foreign exchange derivatives can reduce foreign exchange exposure or not. We use a regression model and provide a two stage examination. In the first stage, we try to find each company’s foreign exchange exposure and compare the differences between two time periods. In the second stage, we focus on the factors which influence foreign exchange exposure. We find evidence that in the second time period, which begins after the Asian financial crisis and continues to Dec. 2005, that the sample ratio of foreign exchange exposure significance was higher than in the first time period (Apr. 1989 to Jun. 1997). We also find that the debt ratio, quick ratio and company size do not significantly affect foreign exchange exposure. Likewise, using foreign exchange derivatives does not significantly reduce foreign exchange exposure. This result means that there are more factors that influence foreign exchange risk and that foreign exchange risk can not be easily explained by an analysis of financial data alone.