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THE FOREIGN EXCHANGE OPERATING EXPOSURE OF AUSTRALIAN STOCKS
Author(s) -
Loudon Geoffrey
Publication year - 1993
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1993.tb00191.x
Subject(s) - business , foreign exchange , monetary economics , economics
This paper provides empirical evidence on the stock return sensitivity of a sample of Australian companies, to changes in the trade weighted index value of the Australian dollar during the post float period January, 1984 ‐ December, 1989. Exposure is estimated using time series regression methods. While the evidence of exposure is generally weak, there is evidence that resource stocks and industrial stocks respond differentially to fluctuations in the Australian dollar.