ŠIMÁKOVÁ, Jana and Nikola RUSKOVÁ. The Role of Exchange Rates in the Stock Price Development of Chemical Companies in the Visegrad Four Countries. COMPARATIVE ECONOMIC RESEARCH - CENTRAL AND EASTERN EUROPE. Walter de Gruyter GmbH, 2019, vol. 22, No 3, p. 117-129. ISSN 2082-6737. Available from: https://dx.doi.org/10.2478/cer-2019-0026Openaccess.
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Basic information
Original name The Role of Exchange Rates in the Stock Price Development of Chemical Companies in the Visegrad Four Countries
Authors ŠIMÁKOVÁ, Jana (703 Slovakia, guarantor, belonging to the institution) and Nikola RUSKOVÁ (203 Czech Republic).
Edition COMPARATIVE ECONOMIC RESEARCH - CENTRAL AND EASTERN EUROPE, Walter de Gruyter GmbH, 2019, 2082-6737.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50206 Finance
Country of publisher Germany
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/47813059:19520/19:A0000044
Organization unit School of Business Administration in Karvina
Doi http://dx.doi.org/10.2478/cer-2019-0026Openaccess
Keywords in English exchange rate;firm value;exchange rate exposure;Jorion’s model;chemical industry
Tags International impact, Reviewed
Changed by Changed by: Ing. Petra Skoumalová, učo 50554. Changed: 21/4/2020 11:16.
Abstract
The aim of the paper is to evaluate the effect of exchange rates on the stock prices of companies in the chemical industry listed on the stock exchanges in the Visegrad Four countries. The empirical analysis was performed from September 2003 to June 2016 on companies from the petrochemical and pharmaceutical industry. The effect of the exchange rate on stock prices is analyzed using Jorion’s approach on monthly data. In contrast to the selected petrochemical companies, the pharmaceutical companies did not use any hedging instruments in the tested period. The effect of the exchange rate on the stock price was proved only in the case of companies from the pharmaceutical industry. This suggests that exchange rate risk could be eliminated by using hedging instruments.
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