The Impact of FX Exposure on the Firm's Stock Market Return

It is generally acknowledged that one of the risks faced by any company FX risk, especially when business operates internationally. For individual companies, exposure to risk results in different financial implications, stressing such parameters as industry affiliation and company’s size with respect to the level exposure. In this paper we analyse how of companies operating industrial service sectors affects their stock market returns. Using panel regression macroeconomic and companies’ specific factors for 208 European analysed over period 2012–2018, show link between changes in exchange rate return statistically significant medium-size as well firms sector economy are more exposed this impact.