Research On Foreign Exchange Risk Exposure Of Listed Companies' Value In China

After the 2008 financial crisis,the world economy went down and trade disputes occurred frequently,resulting in global economic instability and sharp foreign exchange fluctuations.China's economic growth has also shifted from high-speed growth to high-quality growth,entering a new normal.Under the new economic situation,our country is actively looking for a new way out from both inside and outside:to carry out structural reforms on the supply side and the implementation of the "the belt and road"policy.In the gradually opening Chinese market,more and more enterprises choose to"go out",then foreign exchange fluctuations will inevitably affect the value growth of enterprises.How to study the current situation of foreign exchange risk exposure faced by Chinese enterprises and effectively reduce it is an important research topic.Based on previous studies,this paper uses EVA(Economic Value Added)to better measure the value of enterprises,and collects import and export data of China and 11 countries or regions to calculate the real effective exchange rate of 12 industries.As for the sample selection,the quarterly EVA index of 1424 listed companies from the first quarter of 2009 to the fourth quarter of 2018 was used.Empirical analysis shows that foreign exchange risk exposure is common in Chinese enterprises.In the actual research,this paper also added other variables in the empirical model:the level of industry fluctuation,the market size of the enterprise,the book-to-market ratio of the enterprise,the price-to-earnings ratio of the enterprise,the level of the enterprise,the turnover rate of the total assets of the enterprise,and two dummy variables:whether there is import or export business and whether the company was affected by the "the belt and road”policy,so as to better study the relevant factors affecting the EVA of the enterprise and how to effectively reduce the impact of foreign exchange fluctuation on the enterprise.Further research shows that the foreign exchange risk exposure of Chinese enterprises is obviously institutional and regional.State-owned or state-controlled enterprises and enterprises in the northern coastal areas have higher foreign exchange risk exposure.The sub-industry research shows that the power,heat,gas and water production and supply industries have high foreign exchange risk exposure and need special attentionFinally,combined with the research results of the full text,this paper provides relevant policy recommendations from the two levels of government and enterprises,hoping that the two sides can cooperate to jointly reduce the foreign exchange risk exposure of enterprises and create a good economic environment.