The Empirical Analysis of Exchange Rate Exposure of Taiwan Industry by Quantile Regression
碩士 === 國立高雄應用科技大學 === 企業管理系 === 102 === It is well known exchange rate movements will affect the value of firms. But the recent empirical studies have found that foreign exchange rate exposure is not significant. It is possibly due to the estimate bias caused by the mean approach used in the past li...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2014
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| Online Access: | http://ndltd.ncl.edu.tw/handle/v84dze |
| Summary: | 碩士 === 國立高雄應用科技大學 === 企業管理系 === 102 === It is well known exchange rate movements will affect the value of firms. But the recent empirical studies have found that foreign exchange rate exposure is not significant. It is possibly due to the estimate bias caused by the mean approach used in the past literature. The proxy variable firms value is not a good measurement. Because of all, in this paper we use the quantile regression and cash flow framework proposed by Walsh (1994) to solve those problems.
The empirical results show that all the Taiwan industry’s foreign exchange rate exposure is negative. According to economic theory electrical and electronics industry has been considered to be export industries. We conjecture it is because of Taiwan electrical and electronics industry has well hedge strategy. It makes the foreign exchange rate exposure is negative.
This paper provides another view about NT dollar’s exchange rate. Taiwan’s Dependence upon foreign trade is very high. If Taiwan government devalued the NT dollar for export industry it will make import industry suffered losses.
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