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Exchange rate exposure in the pre- and post-Euro periods: evidence from Finland

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  • Gregory Koutmos
  • Johan Knif

Abstract

This paper investigates asymmetric as well as first- and second-moment exchange rate exposure of the Finnish stock exchange (FSE) during the pre- and post-Euro periods. There is evidence of significant market-level and residual exchange rate exposure in the pre-Euro period. In the period, following the introduction of the Euro, however, exchange rate exposure becomes insignificant both at the market level and at the individual portfolio level with minor exceptions. Obviously, the introduction of the Euro has had a profound impact on the exchange rate exposure of the FSE.

Suggested Citation

  • Gregory Koutmos & Johan Knif, 2011. "Exchange rate exposure in the pre- and post-Euro periods: evidence from Finland," The European Journal of Finance, Taylor & Francis Journals, vol. 17(8), pages 661-674.
  • Handle: RePEc:taf:eurjfi:v:17:y:2011:i:8:p:661-674 DOI: 10.1080/1351847X.2010.543843
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    References listed on IDEAS

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    Cited by:

    1. Fabio Parlapiano & Vitali Alexeev & Mardi Dungey, 2017. "Exchange rate risk exposure and the value of European firms," The European Journal of Finance, Taylor & Francis Journals, pages 111-129.

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