期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2018
卷号：7
期号：4
页码：108-121
DOI：10.5923/j.ijfa.20180704.03
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：This paper presents the research results on the impact of real effective exchange rate (REER) on Indian firm performance. The analysis is based on a multivariate regression model, for the time period from 1 Dec 2011 to 1 Dec 2012 for the top 242 Indian firms of Bombay Stock Market. Our empirical analysis reveals that significant relationships between real effective exchange rate (REER) changes (fluctuations) and firm performance indexes through changes imports as well as foreign exchange liabilities sector. The impact size of imports indexes is different so that stores and spares imports and capital goods imports are more effective than other imports indexes to firm performance. The firm performance indexes such as growth performance (internal growth), profitability (EBIT), firm specifics (Capacity Utilization), and stock performance (P/E) have an obvious relationship to the changes of imports, foreign currency borrowings and total forex spending indexes. Other indexes that decrease the effect changes in exchange rate have on Indian firms include: bigger (P/E) ratio and higher internal growth rate.We also found a weak relationship between the real effective exchange rate (REER) and stock price per book value, stock price per sales, total assets value/shares outstanding and degree of operating leverage.
关键词：Exchange rate; Exchange rate fluctuations; Real effective exchange rate; REER; Firm performance; Firm value; Firm spesifics; India
