Research On The Influencing Factors Of Foreign Exchange Risk Exposure In Optical Components Manufacturing Enterprises

With the deepening reform and internationalization of RMB exchange rate system,the range of bilateral fluctuation and the unpredictability of the trend of RMB have been strengthened.The fluctuation of exchange rate has had an important impact on the operation of import and export enterprises in China.However,most enterprises lack sufficient understanding of exchange rate risk.The ability and means to resist it are relatively scarce.Exchange rate risk exposure expanded,which affecting the competitiveness economic and value of enterprises.Therefore,enterprises need to have a correct understanding and measurement of foreign exchange risk,and analyze the important factors that affect the exposure of foreign exchange risk,and then find effective measures to deal with the risk caused by exchange rate fluctuations.Optical device industry is the foundation of telecommunication industry and digital communication industry in China.It plays an important role in the national economic development.With the increasing export of optical device products,exchange rate fluctuations have brought important influence to optical device manufacturing enterprises.Therefore,it is of practical significance to study the management of foreign exchange risk in optical device manufacturing enterprises.Based on the analysis of export status and foreign exchange risk sources of optical device manufacturers,this paper uses three-step method to study the factors affecting foreign exchange risk exposure of optical device manufacturers.The First Step: We collect the financial data of listed companies of optical device manufacturing,and estimate the exposure value and significant situation of foreign exchange risk by using FFM extended market model and liquidity premium extended market model based on Chinese capital characteristics.The results show that most of the sample enterprises have significant exposure to foreign exchange risk.The Second Step: Based on the qualitative analysis of the influencing factors of foreign exchange risk,the paper designs a questionnaire,analyzes the results of the questionnaire,and extracts six public factors,including the degree of foreign affairs,the scale of the enterprise,the competitiveness of the enterprise,the use of enterprise financial instruments,the satisfaction to the financial market and the concern on foreign exchange risk.The Third Step: on the basis of questionnaire survey and according to the actual situation of optical device manufacturing enterprises,four of the six common factors extracted above are adopted,namely,the degree of foreign affairs of the enterprise,the scale of the enterprise,the competitiveness of the enterprise,and the use of the financial instruments.And we also introduce research ability and enterprise liquidity level to carry on the influence factor analysis.But through the collinearity test,the liquidity level of the enterprise has harmful multi-collinearity.Therefore,the other five factors are analyzed by regression analysis of the influencing factors of foreign exchange risk exposure,and the significance of each influencing factor and the relevant direction of foreign exchange risk exposure are obtained.Finally,on the basis of the empirical research in the previous paper,the conclusion of this paper is drawn and the suggestions of foreign exchange risk management for optical device manufacturers are given.