The Foreign Exchange Exposure and Its Determinants for Communications Equipment Industry in Taiwan

• Main Authors: Yu-Syuan Jhong, 鍾瑀萱
• Other Authors: Rern-Jay Hung
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/61987784968396132614

碩士 === 國立屏東科技大學 === 財務金融研究所 === 96 === This research focuses on the foreign exchange exposure and its determinants for 48 communications equipment companies in Taiwan during January 2003 to December 2007. This essay uses the definition of the foreign exchange exposure by Adler and Dumas (1984), a regression model to evaluate the exchange rate exposure of each company. Moreover, we attempt to test the effects of export ratio, debt ratio, quick ratio and gross profit margin on foreign exposure.The empirical results show that there exhibit significant US exposure effect in ten communications equipment companies, but only four in Euro exposure effect. In addition, the empirical results show for both US dollar and Euro, the lagged exchange rate exposure isn’t as significant as contemporary exchange rate exposure. As the determents of exposure, the empirical results show that export ratio and gross profit margin are significantly positive related with exposure. However, debt ratio and quick ratio aren’t significantly related with exposure.