EXPOSURE NILAI TUKAR PADA PERUSAHAAN-PERUSAHAAN DI INDONESIA
Author(s) -
Bahtiar Usman
Publication year - 2020
Publication title -
media riset bisnis and manajemen
Language(s) - English
Resource type - Journals
eISSN - 2442-9716
pISSN - 1411-884X
DOI - 10.25105/mrbm.v3i3.8106
Subject(s) - elasticity (physics) , exchange rate , business , enterprise value , monetary economics , economics , finance , materials science , composite material
Measuring Exchange rate Exposure or elasticity between changes in firm value and ex- change rate measures is important for making decision in firm financing. Using 10 big firm in Indonesia from 1998 to 2003 monthly, we find that REE (Residual Elasticity Exposure) meth- ods is better than TEE (Total Elasticity Exposure), because inclusion of a market retum varlable has a dramaticinfluence in these model. So, we suggest for finance managers in Indonesia to use Exchange rate Exposure from REE Model.
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