The report examine whether exchange rate movements affect firms’ values and the impact of hedging on exchange rate exposure and the market value of firms. In the first essay, I empirically examine the firm-specific exchange rate exposure of Japanese multinational corporations (MNC).
This paper evaluates if international stock markets are exposed to fluctuation in the exchange rate and whether this exposure is related to exports, imports and inflation. Eight countries are studied: Australia, Belgium, Brazil, Hong Kong, Sweden, Switzerland, the United Kingdom and the
Due to globalization investors have increasing opportunities to invest on international markets for diversification purposes. This thesis illustrates the added risks of investing internationally due to volatile exchange rates. The purpose is to analyze how a volatile exchange rate affect the risk