Exchange rate exposure of the listed company in Taiwan– A comparison between capital market approach and cash flow based approach

• Main Authors: Shu-Huei Gu, 古淑慧
• Other Authors: An-Ping Wang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/89636692925918048367

碩士 === 朝陽科技大學 === 保險金融管理系碩士班 === 98 === Taiwan is an island of international trade, economy pattern of export-oriented ; Thus, it’s become the mainstream of Taiwan''s economic development. The exchange rate changes will affect not only the import and export value of the acceptance but also the volume of trade between nations. However, in Taiwan, companies can take varies of the extent of risk exposure under a variety of different industries. There are many ways that are used to measure foreign exchange risk exposure. Two methods were used in this study- to compare between Clash Flow and Capital Asset Pricing Model. Among the study of previous scholars, most of them used the Capital Asset Pricing Model to measure the extent of foreign exchange risk exposure. But, the evidences of the results were shown that they are not noticeable. Later, some scholars used the orthogonal-oriented change into the Capital Asset Pricing Model to test the extent of the exchange rate exposure, and the empirical results were shown that have been greatly improvement. This study focus on the various listed companies in Taiwan industry. In the case of exchange rate changes can be affected level under U.S. dollar,Japanese yen, Renminbi, and Euro. In this paper, using orthogonal-oriented to measure Capital Asset Pricing Model; moreover, the real exchange rate as the benchmark for measuring results can be compared. The following are the purposes of this study: First: Using orthogonal capital market compares with the difference of foreign currency exposure among different foreign exchange. Second: To study the listed company of various industries in Taiwan helps to understand whether they would have different risk exposure or not . Expected empirical results will be showed real exchange rate as a benchmark. The closest to the real exchange rate is Renminbi