Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia

Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia

This study constructs an analysis on the effect of foreign exchange rate change on firm value of 90 Malaysian companies in Plantation sector, Consumer Product sector and Industrial Product sector that were listed on Bursa Malaysia for the period of January 2008 to December 2012. This study also exte...

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Main Author: Wan Nur Izni, Wan Ahmad Kamar
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/4627/1/s813776.pdf
https://etd.uum.edu.my/4627/2/s813776_abstract.pdf
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id my-uum-etd.4627
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Regupathi, Angappan
topic HG Finance
spellingShingle HG Finance
Wan Nur Izni, Wan Ahmad Kamar
Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
description This study constructs an analysis on the effect of foreign exchange rate change on firm value of 90 Malaysian companies in Plantation sector, Consumer Product sector and Industrial Product sector that were listed on Bursa Malaysia for the period of January 2008 to December 2012. This study also extends the analysis by investigating the possible determinants of foreign exchange exposure. The result of this study reveals that companies in Plantation sector seems to be more exposed to foreign exchange rate risks compared to Consumer Product sector and Industrial Product sector. Besides that, size, liquidity, debt, asset turnover, profit margin, currency diversification and foreign subsidiary diversification were found to be insignificant in explaining the possible factors that can influence foreign exchange exposure. Overall, the results suggests that the extent of foreign exchange exposure was rather low with the degree of the exposure was more prominent in Plantation sector than in Consumer Product sector and Industrial Product sector. US dollar and Singapore dollar seemed to pose greater exposure on Malaysian firms though which years showed more prominent exposure was different for all the three sectors.
format Thesis
qualification_name masters
qualification_level Master's degree
author Wan Nur Izni, Wan Ahmad Kamar
author_facet Wan Nur Izni, Wan Ahmad Kamar
author_sort Wan Nur Izni, Wan Ahmad Kamar
title Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
title_short Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
title_full Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
title_fullStr Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
title_full_unstemmed Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia
title_sort foreign exchange exposure and its determinants among some listed companies from selected sectors in malaysia
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/4627/1/s813776.pdf
https://etd.uum.edu.my/4627/2/s813776_abstract.pdf
_version_ 1747827769184616448
spelling my-uum-etd.46272021-03-29T09:48:47Z Foreign exchange exposure and its determinants among some listed companies from selected sectors in Malaysia 2015 Wan Nur Izni, Wan Ahmad Kamar Regupathi, Angappan Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This study constructs an analysis on the effect of foreign exchange rate change on firm value of 90 Malaysian companies in Plantation sector, Consumer Product sector and Industrial Product sector that were listed on Bursa Malaysia for the period of January 2008 to December 2012. This study also extends the analysis by investigating the possible determinants of foreign exchange exposure. The result of this study reveals that companies in Plantation sector seems to be more exposed to foreign exchange rate risks compared to Consumer Product sector and Industrial Product sector. Besides that, size, liquidity, debt, asset turnover, profit margin, currency diversification and foreign subsidiary diversification were found to be insignificant in explaining the possible factors that can influence foreign exchange exposure. Overall, the results suggests that the extent of foreign exchange exposure was rather low with the degree of the exposure was more prominent in Plantation sector than in Consumer Product sector and Industrial Product sector. US dollar and Singapore dollar seemed to pose greater exposure on Malaysian firms though which years showed more prominent exposure was different for all the three sectors. 2015 Thesis https://etd.uum.edu.my/4627/ https://etd.uum.edu.my/4627/1/s813776.pdf text eng public https://etd.uum.edu.my/4627/2/s813776_abstract.pdf text eng public masters masters Universiti Utara Malaysia Adler, M. and Dumas, B. (1984). Exposure to Currency Risk: Definition and Measurement. Financial Management 13, 41-50. Aggarwal, R., & Harper, J. T. 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