Foreign exchange exposure and impact of policy switch - the case of Malaysian listed firms
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This article undertakes an in-depth study of the foreign exchange exposure of Malaysian listed firms. We examine several issues related to firm-specific and overall exposure, including an evaluation of the efficacy of adopting a hard-peg on such exposure. Our sample consists of 158 listed firms and spans the 16 year period, 1990–2005. A multivariate model using four bilateral exchange rates is used to determine firm level exposure while panel data analysis using a random-effects Generalized Least Squares (GLS) model is used to determine system-wide or aggregate sample exposure. We find a total 71% of our sample firms to have significant exchange rate exposure, a rate substantially higher than that reported for most countries, especially developed ones.
Firm-specific , Exchange rate , Exposure , Policy , Switch
Bacha, O. I., Mohamad, A., Syed Mohd Zain, S. R., & Mohd Rasid, M. E. S. (2013). Foreign exchange exposure and impact of policy switch - the case of Malaysian listed firms, Applied Economics, 45(20), pp. 2974-2984.