TITLE:
Does Firms Have Impact of Currency Appreciation and Currency Volatility on Market Shares?—Study of Selected Financial and Non-Financial Firms of India
AUTHORS:
Rashmi Soni
KEYWORDS:
Exchange Rate, Export, Performance, Risk, Currency
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.5,
April
13,
2018
ABSTRACT: This study concentrates on the new emerging challenges, opportunities and
issues in the field of Exchange Rate Risk. It highlights the strong and significant
negative impact from currency appreciation and currency volatility on market
shares of India’s Exporting Financial and Non-Financial IT firms. Quantitative
data analysis of companies has been
done and
evaluating the Sales/Revenue growth
performance of Indian firms on various measures/factors like operating
profit, gross profit, net profit etc. Further, we identify the dependent and independent variables and predict the factors that highly
influence the fluctuations in Exchange rate. Finally, we suggest a model at the end and offer Suggestions and Recommendations to
mitigate this risk arising due to currency fluctuations and increase the
investor’s awareness about financial derivatives leading to important policy
implications so as to make forex gains on account of hedging using forward
contract rather
than just aiming to square off its position.