The Enterprise Risk Management of Foreign Exchange Exposures: Evidence from Taiwanese Hospitality Industry

Chiu-Ming Hsiao, Wei-Fang Zhang, Chi-Chang Chiu, Jung-Chang Huang and Yu-Ling Huang

Asian Journal of Economics and Empirical Research, 2017, vol. 4, issue 1, 32-48

Abstract: For this paper, I use the ARIMA model to study the relationship between business performance and exchange rate fluctuations. Through this model, the empirical results shows that the influences of foreign exchange rate fluctuations on the tourist hotel business performance are significant and different across currencies and firms. Furthermore, according to the framework of Kim (2013) we employ the modern portfolio theory proposed by Markowitz (1952) to give an optimal foreign exchange allocation for each tourist hotel company's financial decision-makers, which will avoid the risk of exchange rate fluctuations expose and reduce losses due to the fluctuations of exchange rates, and complete the construction of enterprise risk management system (ERM).

Keywords: Foreign exchange exposures; Modern portfolio theory; Enterprise risk management. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://asianonlinejournals.com/index.php/AJEER/article/view/229/206 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:ajeaer:v:4:y:2017:i:1:p:32-48:id:229

Access Statistics for this article

More articles in Asian Journal of Economics and Empirical Research from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().