The Korean Economic Review
Does the Market Evaluate Firm`s FX Risk Management? -Evidence from the Korean Stock Market-
Do Yeon Kim /Tae Yoon SungYear 2007Vol. 23No. 2
We examine the influence of FX Risk on the Korean stock market. We findthat, except the period when the Korean government maintained the fixedexchange rate regime, FX Risk had a significant influence on firm value inthe Korean stock market. FX Risk exposure turns out to be significantlydifferent among firms. Particularly, we show that large firms tend to be moresensitive to FX Risk and have more incentives to control the risk.