Bishev, Gligor and Boskov, Tatjana (2016) Exchange rate exposure and firm-level performances: The case for Macedonia. International Journal of Information, Business and Management, 8 (4). pp. 6-13. ISSN 2076-9202 (Print) ISSN 2218-046X (Online)
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Abstract
Changes in exchange rates, unless they are expected, can impact the decision making and profitability of
financial and non-financial firms. In particular, with the adoption of flexible exchange-rate regimes in
the early 1970s, exchange-rate risk, contrary to expectations, has led to an increasingly riskier
environment for firms with international transactions. However, a riskier environment does not
necessarily mean higher risk at the firm level as firms can take advantage of risk-management practices in
order to lower or completely eliminate that risk.
Most investors will be familiar with the concept of currency exposure, with constantly changing exchange
rates affecting the cost of investing in international securities. These same issues also affect companies
that operate internationally. So what effect do currency fluctuations have on company profits, and what
are they doing to insulate themselves? In this paper we examine this question. We surveyed financial and
general managers of companies in Macedonia in order to examine their views and practices about this
important questions. It is useful to identify which are exporters and those who seek to provide value in
areas like managing foreign exchange risk and predict currency needs. Key factors for realization of these
goals are also innovation and knowledge that can help in increasing the role of FDI on productivity and
efficient growth with the real exchange rate by stimulating the growth of exports. This can contribute for sustainability of economic growth and economic integration, especially for small and open economy such
as Republic of Macedonia, also subject of analysis in this paper.
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Tourism and Business Logistics |
| Depositing User: | Tatjana Boskov |
| Date Deposited: | 19 Aug 2016 10:51 |
| Last Modified: | 19 Aug 2016 10:51 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/16092 |
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