This bachelor’s thesis investigates the relationship between economic exchange rate exposure and firm value through a literature review. It explains how exposure is defined and measured (including market-based regression approaches) and traces how academic findings evolved from early mixed evidence (“exposure puzzle”) to more recent studies reporting statistically significant sensitivity of firm value to exchange rate movements. A key reviewed study (Parlapiano et al., 2017) on European firms highlights how exposure differs by international involvement, industry, and country of origin, and the thesis also summarizes hedging strategies (financial and operational) that reduce—though do not fully eliminate—currency exposure.
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- Mukhammadzhon Bekhbudov (Author), 2025, Exchange Rate Risk Exposure and Firm Value, Munich, GRIN Verlag, https://www.grin.com/document/1700281
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