This study investigates the foreign exchange risk management program of HDG Inc. (pseudonym), an industry leading manufacturer of durable equipment with sales in more than 50 countries. The analysis relies primarily on a three month field study in the treasury of HDG. Precise examination of factors affecting why and how the firm manages its foreign exchange exposure are explored through the use...

We leveraged a wide range of knowledge in machine learning and information retrieval to develop a robust keywords identification system. In particular, we adapted the Tf-Idf heuristic for feature selection, investigated linear regression, logistic regression, and SVM for predicting number of keywords (tags), and also implemented NaiveBayes, Labeled Latent Dirichlet Allocation(L-LDA) algorithms ...

in a managed floating exchange rate regime, one of the most important issues is the degree to which the monetary authorities intervene in the foreign exchange market.  the appropriate level of intervention in the foreign exchange market can be discussed in a framework which emphasizes the trade-off between changes in the country’s level of international reserves and minimizes the country’s real...

I propose a model of production and financing for firms in an open economy, which features financial frictions and imperfect competition in the domestic goods market. The optimal currency composition of debt comes from the motive to hedge currency exposure, which arises from the industry equilibrium in the domestic goods market. Using a panel dataset of traded Mexican firms, I find evidence tha...

This paper endeavored to categorise and evaluate exchange rate theories. These theories included the International Fischer's Effect Theory, Purchasing Power Parity Interest Rate Balance of Payments Monetary Approach Foreign Exchange, Portfolio Approach. The analyses these theories' advantages disadvantages. Keywords: Exchange Rate; Theory; Approach; DOI: 10.7176/EJBM/14-20-08 Publication date: ...

The smooth threshold autoregressive (STAR) model is by far the most successful model in explaining the well-known two PPP puzzles. The nonlinearity in STAR captures the nature of vast transaction costs in trade, sunk costs in (foreign) investment, and hetergeneity in agents. In this paper, we use a variant of STAR, the Exponential STAR (ESTAR), to study the exchange rate dynamics in China durin...