Advanced Search
MyIDEAS: Login

Exchange rate fluctuations and management control in UK-based MNCs: an examination of the theory and practice

Contents:

Author Info

  • Istemi. Demirag
  • Cristina De Fuentes
Registered author(s):

    Abstract

    This paper explores how UK MNCs assess their foreign subsidiary operating managers' performance in parent company currency terms using operating budgets. It shows how managers' performance evlauation systems may become dysfunctional if the management of currency risk is centralized at the parent company headquarters and the impact of these centralized currency risk decisions on operating performance is subsequently ignored when foreign operating managers are evaluated. The results of the study indicate that the practices of UK MNCs in general have not improved since the early 1980s and there seems to remain a significant gap between theory and practice in this area. However, there is evidence to suggest that UK MNCs, as their US counterparts, are becoming more interested in identifying the impact of exchange rate changes on their foreign subsidiary operations.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/135184799337163
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The European Journal of Finance.

    Volume (Year): 5 (1999)
    Issue (Month): 1 ()
    Pages: 3-28

    as in new window
    Handle: RePEc:taf:eurjfi:v:5:y:1999:i:1:p:3-28

    Contact details of provider:
    Web page: http://www.tandfonline.com/REJF20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/REJF20

    Related research

    Keywords: Foreign Currency; Operating Exposure; Operating Budgets; Performance Evaluations; Control;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. J M McInnes, 1971. "Financial Control Systems for Multinational Operations: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 2(2), pages 11-28, June.
    2. Istemi S Demirag, 1988. "Assessing Foreign Subsidiary Performance: The Currency Choice of U.K. MNCs," Journal of International Business Studies, Palgrave Macmillan, vol. 19(2), pages 257-275, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:5:y:1999:i:1:p:3-28. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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