Firm-Specific Foreign Exchange Exposure Identification: The Fallacy of the Stock Market Approach

@inproceedings{Aabo2014FirmSpecificFE,
  title={Firm-Specific Foreign Exchange Exposure Identification: The Fallacy of the Stock Market Approach},
  author={Tom Aabo and Danielle Brodin},
  year={2014}
}
Previous studies have used the stock market approach to find the aggregate number of (firms with) foreign exchange exposures in a given country, region, or industry. Methodologies have differed in many aspects but two of the most basic differences relate to observation frequency and the choice of market index. Aggregate numbers have been shown to be (marginally) sensitive to the methodology employed. However, a corporate manager, an investor, or a stock analyst following a specific firm is not… CONTINUE READING

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