Business, Management and Accounting
4 years ago

Macroeconomic news shifts foreign exchange exposure for U.S. multinationals.

The response of multinationals’ foreign exchange rate exposure to macroeconomic news
Kris Boudt, Christopher J. Neely, Piet Sercu, Marjan Wauters

Paper Summary

Multinational companies in the U.S. are affected by economic news, which changes how much they are exposed to foreign exchange rate fluctuations. When there is good news about the economy, like more jobs being created, these companies become less affected by changes in exchange rates. This effect can last for a while, not just right after the news is announced.

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