IDEAS home Printed from https://ideas.repec.org/a/spt/apfiba/v1y2011i4f1_4_7.html
   My bibliography  Save this article

A Firm Level Analysis of the Exchange Rate Exposure of Indian Firms

Author

Listed:
  • A. Kanagaraj
  • Ekta Sikarwar

Abstract

The study examines the level of foreign exchange exposure and its determinants for a sample of Indian firms. For this purpose, the relationship between exchange rate changes and stock returns for a sample of 361 Indian non financial firms is determined over April 2006-March 2011. The study finds that only 16 percent of the firms are exposed to exchange rate exposure at 10 percent level of significance. Furthermore, out of the firms having significant exposure, 86 percent firms are negatively affected by an appreciation of the rupee which confirms that Indian firms are net exporters. With respect to the determinants of exchange rate exposure, it reveals that export ratio is positively and hedging activity is negatively related to the exchange rate exposure of pure exporter firms.

Suggested Citation

  • A. Kanagaraj & Ekta Sikarwar, 2011. "A Firm Level Analysis of the Exchange Rate Exposure of Indian Firms," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 1(4), pages 1-7.
  • Handle: RePEc:spt:apfiba:v:1:y:2011:i:4:f:1_4_7
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/JAFB%2fVol%201_4_7.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mustafa Avcın, 2024. "The impact of justified corporate governance changes against exchange rate exposure in North Cyprus," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1947-1971, April.
    2. Sonali Madhusmita Mohapatra, 2017. "A Comparison of Exchange Rate Exposure between Manufacturing vis-à-vis Service Sector Firms in India," Economic Papers, The Economic Society of Australia, vol. 36(1), pages 75-85, March.
    3. Jaratin Lily & Imbarine Bujang & Abdul Aziz Karia & Mori Kogid, 2018. "Exchange rate exposure revisited in Malaysia: a tale of two measures," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(4), pages 409-435, December.
    4. Oliver Ike Inyiama & Caroline N. Ozouli, 2014. "Interactions between Exchange Rate and Financial Performance Indicators in Nigeria Beer Industry: Evidence from Nigeria Breweries Plc," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 3, November.

    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:spt:apfiba:v:1:y:2011:i:4:f:1_4_7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.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.