The Research On The Influence Of RMB Exchange Rate Fluctuations To Listed Multinational Corporations

With the rapid economic development and the deepening of reform and opening up, especially in the accession to WTO and the exchange rate mechanism reform, our businesses have gradually toward the road of international operations. Multinational enterprises have also seen rapid development , and it has made a significant contribution on China's economic growth.After exchange rate reform in China in the July 21, 2005, more flexible RMB exchange rate formation mechanism and market leading the RMB exchange rate, the wider listed multinational enterprises are faced a huge exchange-rate risk. The past two years, with increasing appreciation of the RMB, it has brought tremendous pressures and challenges to foreign-related enterprises. In the process of international operations, Chinese listed enterprises must face the risks of exchange rate fluctuations and risks management. It is also an important direction in multinational enterprises theoretical and empirical research. Exchange rate fluctuation has very important influence on the competitiveness of enterprises, financial stability, risk management, and others. It has important theoretical and practical significance to research the exchange rate risk management theory and strategy of the listed multinational.In this paper, multinational enterprises as the main object of study, theoretical and empirical analysis of models were established based on the theory of value in the international companies. In Empirical analysis, exchange rate variations were analyzed in the short, medium and long-term impact on the enterprise value. And, a few representative listed companies were analyzed in the medium–term. This paper argues that the impact is most notably in the medium term. With the increase of the proportion of export earnings, foreign exchange risks increase in. The company value / exchange rate flexibility of Garment and textile industry, automobile industry, and electronics, machinery industry are greater influenced by the exchange rate; Followed by the aviation industry, energy and raw material industries.It is clear that the exchange rate affects the listed multinational enterprises. To avoid exchange rate risks will become a priority. According to the status that exchange rate risks faced by multinational enterprises, it is proposed to take advantage of financial derivative products and vigorously promote enterprise innovation hedging strategy in this paper. Maybe it can provide some practical effect for multinational enterprises avoiding exchange rate risks.