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Exchange rate exposure at the firm and industry levels: Evidence from Turkey

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  • Akay, Gokhan H.
  • Cifter, Atilla

Abstract

The purpose of this study is to examine industry-weighted exchange rate exposure at the firm and industry level for Turkish plants. We use an unbalanced panel of plant-level data for manufacturing firms in Turkey during the years of 2002 and 2010 in seven industries. The results indicate that macro indicators seem to be a more significant influence on the exchange rate exposure. Moreover, industry-weighted openness is the most important factor to determine the exchange rate exposure for Turkish firms. We also find that the direction of exposure varies at the industry level.

Suggested Citation

  • Akay, Gokhan H. & Cifter, Atilla, 2014. "Exchange rate exposure at the firm and industry levels: Evidence from Turkey," Economic Modelling, Elsevier, vol. 43(C), pages 426-434.
    • Handle: RePEc:eee:ecmode:v:43:y:2014:i:c:p:426-434
    DOI: 10.1016/j.econmod.2014.09.003
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    4. Chow, Yee Peng & Muhammad, Junaina & Bany-Ariffin, A.N. & Cheng, Fan Fah, 2019. "Macroeconomic Uncertainty and Corporate Capital Structure: Evidence from the Asia Pacific Region," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 99-122.
    5. M. A. Adebiyi & M. O. Abeng, 2019. "The Sensitivity of Sector Stock Returns to Exchange Rate Risks in Nigeria," Economic and Financial Review, Central Bank of Nigeria, vol. 57(2), June.
    6. Chou, De-Wai & Lin, Lin & Hung, Pi-Hsia & Lin, Chun Heng, 2017. "A revisit to economic exposure of U.S. multinational corporations," The North American Journal of Economics and Finance, Elsevier, vol. 39(C), pages 273-287.
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    9. İbrahim Ethem Güney & Abdullah Kazdal & Doruk Küçüksaraç & Muhammed Hasan Yılmaz, 2021. "Exchange Rate Sensitivity of Firm Value: Evidence from Nonfinancial Firms Listed on Borsa Istanbul," Springer Books, in: Burcu Adıgüzel Mercangöz (ed.), Handbook of Research on Emerging Theories, Models, and Applications of Financial Econometrics, edition 1, pages 141-165, Springer.
    10. Mücahid Samet YILMAZ & Mustafa ACAR, 2024. "Balance Sheet Effects of Exchange Rate Changes and Debt Dollarisation: An Econometric Analysis on the Turkish Real Sector," Sosyoekonomi Journal, Sosyoekonomi Society, issue 32(60).
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