The impact of justified corporate governance changes against exchange rate exposure in North Cyprus

Author:

Avcın Mustafa1ORCID

Affiliation:

1. Faculty of Business and Economics Rauf Denktaş University Lefkosa Cyprus

Abstract

AbstractThis study seeks to use the legally required governance reforms of the Sarbanes‐Oxley Act of 2002, the Financial Reporting Council 2012–2018 and the EU COM 2012–2014 to investigate the relationship between corporate governance performance, exchange rate exposure and hedging by using two governance indexes based on a more comprehensive model previously constructed. The paper is one of the first to adopt the measures that state the importance of internal (corporate culture) and external (corporate legality) governance qualities that help prevent exchange rate exposure and improve trade and hedging. The examination is conducted by using the ARCH and ARMA models as well as a two‐factor and a multiple‐factor model to capture the variations that significantly account for variations in the exchange rate exposure, net trade, and stock market returns. Empirical results revealed that an improvement in corporate governance indexes is associated with a greater reduction in exchange rate exposure, an increase in net trade, and more hedging at the firm level. In addition, adoption of the corporate legality measures has a greater impact on exchange rate exposure and hedging than corporate culture measures.

Publisher

Wiley

Subject

Economics and Econometrics,Finance,Accounting

Reference37 articles.

1. An empirical examination of the impact of country‐level corporate governance on profitability of Indian banks

2. Market risk, corporate governance, and the regulation during the recent financial crisis

3. Atradius Economic Research(2018).Weak Turkish Lira heightens trade risk. Atradius N.V.

4. Avcın M.(2018).Corporate governance: Leadership effectiveness or financial innovations a dilemma in banking sector in North Cyprus.ICBFP'2018 3rd International Conference on Banking and Finance Perspectives Conference Abstract Book 2018.

5. Avcın M.(2019).Corporate Governance: Achieving good corporate governance in order to deal with the contagion effects of financial crisis. Global Issues in Banking and Finance.4th International Conference on Banking and Finance Perspectives. Springer Proceedings in Business and Economics.

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3