The Effect Of Changes In The Dollar Foreign Exchange Rate On Stock Returns Of Multinational Corporations | Zendy

Taisier Fares AlDiab | Zendy; Marwan M. Sharif Zoubi | Zendy; Phillip W. Thornton | Zendy

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The Effect Of Changes In The Dollar Foreign Exchange Rate On Stock Returns Of Multinational Corporations

Author(s) -

Taisier Fares AlDiab,

Marwan M. Sharif Zoubi,

Phillip W. Thornton

Publication year - 2011

Publication title -

journal of applied business research (jabr)

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.149

H-Index - 22

eISSN - 2157-8834

pISSN - 0892-7626

DOI - 10.19030/jabr.v10i4.5916

Subject(s) - liberian dollar , multinational corporation , exchange rate , monetary economics , stock (firearms) , stock exchange , business , economics , finance , mechanical engineering , engineering

Exchange rate movements are considered to be one of the key factors affecting the operating results of multinational corporations (MNC). Several studies have examined the effect of changes in dollar exchange rates on the stock prices of MNC. The results of these studies have been inconclusive about the effects of changes in the dollar exchange rate on the stock prices of companies with significant overseas operations. This study extends previous research by testing the impact of changes in the dollar exchange rate on security returns of MNC using an event study methodology. The results suggest that changes in dollar exchange rates have little or no impact on the stock returns of MNC.

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