The Role of Exchange Rates in the Stock Price Development of Chemical Companies in the Visegrad Four Countries

• Authors: Jana Šimáková , Nikola Rusková

Title variants

Rola kursów wymiany w rozwoju cen akcji spółek chemicznych w państwach Grupy Wyszehradzkiej

• Languages of publication: EN

Abstracts

EN

The aim of the paper is to evaluate the effect of exchange rates on the stock prices of companies in the chemical industry listed on the stock exchanges in the Visegrad Four countries. The empirical analysis was performed from September 2003 to June 2016 on companies from the petrochemical and pharmaceutical industry. The effect of the exchange rate on stock prices is analyzed using Jorion’s approach on monthly data. In contrast to the selected petrochemical companies, the pharmaceutical companies did not use any hedging instruments in the tested period. The effect of the exchange rate on the stock price was proved only in the case of companies from the pharmaceutical industry. This suggests that exchange rate risk could be eliminated by using hedging instruments.

PL

Celem artykułu jest ocena wpływu kursów walut na ceny akcji spółek z branży chemicznej notowanych na giełdach w krajach Grupy Wyszehradzkiej. Analiza empiryczna obejmowała okres od września 2003 r. do czerwca 2016 r. W oparciu o dane miesięczne pochcodzące z firm z branży petrochemicznej i farmaceutycznej dokonano analizy wpływu kursu wymiany na ceny akcji za pomocą modelu Joriona. W przeciwieństwie do wybranych spółek petrochemicznych, firmy farmaceutyczne nie stosowały żadnych instrumentów zabezpieczających w badanym okresie. Wpływ kursu walutowego na cenę akcji został udowodniony tylko w przypadku firm z branży farmaceutycznej. Sugeruje to, że ryzyko kursowe można wyeliminować za pomocą instrumentów zabezpieczających.

Keywords

EN

exchange rate; firm value; exchange rate exposure; Jorion’s model; chemical industry

PL

kurs walutowy; wartość firmy; ekspozycja na ryzyko walutowe; model Joriona; przemysł chemiczny; kurs walutowy; wartość firmy; ekspozycja na ryzyko walutowe; model Joriona; przemysł chemiczny

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Comparative Economic Research. Central and Eastern Europe
• Year: 2019
• Volume: 22
• Issue: 3
• Pages: 117-129

Dates

published

2019-08-19

Contributors

author

Jana Šimáková

• Silesian University in Opava, School of Business Administration in Karviná, Department of Finance and Accounting, Karviná Czech Republic

author

Nikola Rusková

• Silesian University in Opava, School of Business Administration in Karviná Department of Finance and Accounting, Karviná, Czech Republic

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Identifiers

DOI

10.2478/cer-2019-0026