Navigating Global Finances: An In-depth Analysis of Foreign Exchange Exposure in Multinational Companies - Insights from Industry Practitioners

Augustine C. Arize, Giuliana Campanelli Andreopoulos, John Malindretos, Alex Panayides, Demetri Tsanacas
European Research Studies Journal, Volume XXVI, Issue 2, 641-648, 2023
DOI: 10.35808/ersj/3771

Abstract:

Purpose: The primary objective of this study is to investigate the behavior of practitioners in the face of global finance challenges, with a specific focus on operating foreign exchange exposure. Design/Methodology/Approach: The study relies on a survey conducted among 200 leading multinational companies listed in the Forbes 500. Findings: The results obtained from the specialized questionnaire indicate that hedging is pursued, albeit not fully but partially. Practical Implications: In conclusion, the study supports the perspective that hedging Operating Foreign Exchange Exposure is not simple; rather, it is a complex undertaking. Originality/Value: The research method is unique as it is based on a specific sample of top managers from 200 multinational companies.


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