Analysis of factors influencing corporate currency risk
Wen Kong
University of New South Wales
DOI: https://doi.org/10.59429/bam.v7i2.10511
Keywords: Corporate currency risk; Macroeconomic factors; Enterprise-specific factors; Risk management; Currency fluctuations
Abstract
This paper conducts an in-depth analysis of the factors influencing corporate currency risk. In the context of increasingly frequent international economic and trade activities, currency risk has become a significant challenge for enterprises.By exploring macro-economic factors such as interest rate differentials, inflation rates, and economic growth, as well as enterprise-specific factors including business scope, financial structure, and risk management capabilities, this paper aims to comprehensively understand the influencing mechanism of currency risk.Additionally, it analyzes the impact of global political situations, trade policies, and regulatory environments on corporate currency risk.Through theoretical analysis and case studies, the paper provides a basis for enterprises to formulate effective currency risk management strategies, helping them reduce potential losses caused by currency fluctuations and enhance their competitiveness in the international market.
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