The exchange rate's impact on overseas profits of U.S. multinationals

Article Abstract:

An analysis of exchange rate effects on the profits of US multinational businesses reveals that there is an almost one-to-one translation effect in exchange rate effect on net profits making exchange rate fluctuations negligible. The study reveals that multinationals' foreign currency profits of 1% tend to be offset by lower prices of 0.94% imposed so as to maintain the price competitiveness of products.

Research, Management science, Analysis, Foreign investments, Finance, International aspects, Profit, Profits, International business enterprises, International liquidity

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Foreign exchange derivatives, exchange rate changes, and the value of the firm: U.S. multinationals' use of short-term financial instruments to manage currency risk

Article Abstract:

This study examines the implications of the use of foreign exchange derivatives in association with firm value changes and exchange rate changes, particularly the lagged firm value effects of exchange rate changes in firms with low foreign exchange derivatives use relative to foreign sales,

Statistical Data Included, Methods, Investigations, Derivatives (Financial instruments), Corporations, Valuation, Foreign sales corporations, Short-term financing, Short term financing, Foreign exchange futures

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The central bank and speculators in the foreign exchange market under asymmetric information: a strategic approach and evidence

Article Abstract:

The impact of intervention of the central bank in the foreign exchange market on the investors and the behavior of speculators are discussed.

Government expenditures, Forecasts, trends, outlooks, Economic aspects, Forecasts and trends, Economic policy, Central banks, Market trend/market analysis, Investors, Foreign exchange market

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