IDEAS home Printed from https://ideas.repec.org/a/spr/metrik/v16y2005i3p325-348.html
   My bibliography  Save this article

Währungsumrechnung im Planungs- und Kontrollprozess

Author

Listed:
  • Andreas Hoffjan
  • Timo Kornetzki

Abstract

Exchange rare fluctuations complicate the cross-border planning-, control- and co-ordination process in the long-term. The preparation and controlling of budgets as a classic management accounting instrument in the international context also requires a conversion of exchange rates. This article introduces the Lessard-Lorange-model and the Demirag-model as the most important methods of foreign currency conversion in the context of international controlling as well as a rather new value based budgeting technique. The selection of combinations of planned- and controlled exchange rates depends decisively on the assessed object it is based upon, the foreign company as a whole or the performance of the local management. Moreover, empirical results prove that currency conversion is dependent upon whether the subsidiary is in a hard currency country or in a soft currency country. Copyright Physica-Verlag 2005

Suggested Citation

  • Andreas Hoffjan & Timo Kornetzki, 2005. "Währungsumrechnung im Planungs- und Kontrollprozess," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 16(3), pages 325-348, September.
    • Handle: RePEc:spr:metrik:v:16:y:2005:i:3:p:325-348
    DOI: 10.1007/BF02825647
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02825647
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02825647?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Laurent L Jacque, 1981. "Management of Foreign Exchange Risk: A Review Article," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(1), pages 81-101, March.
    2. Joel M. Stern & G. Bennett Stewart & Donald H. Chew, 1996. "Eva®*: An integrated financial management system*," European Financial Management, European Financial Management Association, vol. 2(2), pages 223-245, July.
    3. Istemi S Demirag, 1988. "Assessing Foreign Subsidiary Performance: The Currency Choice of U.K. MNCs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(2), pages 257-275, June.
    4. Laurent L Jacque & Paul M Vaaler, 2001. "The International Control Conundrum with Exchange Risk: An EVA Framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(4), pages 813-832, December.
    5. Laurent L Jacque & Peter Lorange, 1984. "The International Control Conundrum: The Case of ‘Hyperinflationary’Subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 185-201, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin, Anna D. & Mauer, Laurence J., 2003. "Exchange rate exposures of US banks: A cash flow-based methodology," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 851-865, May.
    2. Boger, Tal, 2018. "On Israel's "Hyperinflation"," Studies in Applied Economics 127, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    3. Haley, Usha C. V., 2003. "Assessing and controlling business risks in China," Journal of International Management, Elsevier, vol. 9(3), pages 237-252.
    4. Istemi. Demirag & Cristina De Fuentes, 1999. "Exchange rate fluctuations and management control in UK-based MNCs: an examination of the theory and practice," The European Journal of Finance, Taylor & Francis Journals, vol. 5(1), pages 3-28.
    5. Zhu, Ying & Sardana, Deepak, 2020. "Multinational enterprises’ risk mitigation strategies in emerging markets: A political coalition perspective," Journal of World Business, Elsevier, vol. 55(2).
    6. Serge Agbodjo & Isabelle Martinez, 2012. "La création de valeur actionnariale est-elle pertinente pour la prise de décision d'investissement ? Une étude empirique du SBF250 par secteurs d'activité," Post-Print hal-00935809, HAL.
    7. Karsten Paetzmann & Thomas Kaspereit, 2010. "Zum Einsatz von Residualgewinnmodellen post BilMoG – Nähert sich das Accounting Model dem Economic Model?," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 20(4), pages 419-444, March.
    8. Hagigi, Moshe & Sivakumar, Kumar, 2009. "Managing diverse risks: An integrative framework," Journal of International Management, Elsevier, vol. 15(3), pages 286-295, September.
    9. Eduardsen, Jonas & Marinova, Svetla, 2020. "Internationalisation and risk: Literature review, integrative framework and research agenda," International Business Review, Elsevier, vol. 29(3).
    10. Dikova, Desislava & Smeets, Roger & Garretsen, Harry & Van Ees, Hans, 2013. "Immediate responses to financial crises: A focus on US MNE subsidiaries," International Business Review, Elsevier, vol. 22(1), pages 202-215.
    11. Kashlak, Roger, 1998. "Establishing financial targets for joint ventures in emerging countries: A conceptual model," Journal of International Management, Elsevier, vol. 4(3), pages 241-258, November.
    12. Jonas Eduardsen & Svetla Marinova, 2016. "Decision-makers' risk perception in the internationalisation of small and medium-sized firms," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 4-26.
    13. Manju Tripathi & Smita Kashiramka & P. K. Jain, 2018. "Flexibility in Measuring Corporate Financial Performance, EVA Versus Conventional Earnings Measures: Evidences from India and China," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(2), pages 123-138, June.
    14. Dambrin, Claire & Robson, Keith, 2011. "Tracing performance in the pharmaceutical industry: Ambivalence, opacity and the performativity of flawed measures," Accounting, Organizations and Society, Elsevier, vol. 36(7), pages 428-455.
    15. Göthlich, Stephan E., 2007. "Zur Ideengeschichte von Buchführung, Kostenrechung und Controlling vor dem Hintergrund ihres historischen Kontexts," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 617, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    16. Robert J. Kauffman & Dan Ma & Martin Yu, 2018. "A metrics suite of cloud computing adoption readiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(1), pages 11-37, February.
    17. Martin, Anna D. & Mauer, Laurence J., 2003. "Transaction versus economic exposure: which has greater cash flow consequences?," International Review of Economics & Finance, Elsevier, vol. 12(4), pages 437-449.
    18. Dimitris Kyriazis & Christos Anastassis, 2007. "The Validity of the Economic Value Added Approach: an Empirical Application," European Financial Management, European Financial Management Association, vol. 13(1), pages 71-100, January.
    19. Hofmann, Erik, 2011. "Risk management in international supply chains: the case of natural hedging," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(2), pages 155-192.
    20. Abhimanyu Sahoo & Seshadev Sahoo, 2020. "What Drives Derivatives: An Indian Perspective," JRFM, MDPI, vol. 13(6), pages 1-19, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:metrik:v:16:y:2005:i:3:p:325-348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.