The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Measuring macroeconomic exposure: The case of Volvo Cars

Author

  • Lars Oxelheim
  • Clas Wihlborg

Summary, in English

Volvo Cars' economic exposure to exchange rates and other macroeconomic variables is estimated using quarterly cash flows as the firm's target variable. We discuss first several issues relating to management's view of the macroeconomic environment, as well as the firm's objective and structure. These issues must be addressed before multiple regression analysis can be implemented with the purpose of estimating exposures. the use of cash flow exposure coefficients for evaluating exposure and choosing currency denomination of liabilities is illustrated, and an out-of-sample analysis of the estimated exposure coefficients is carried out.

Publishing year

1995

Language

English

Pages

241-263

Publication/Series

European Financial Management

Volume

1

Issue

3

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economics and Business
  • Business Administration

Keywords

  • economic and cash flow corporate exposure
  • exchange rate risk
  • macroeconomic exposure management

Status

Published

ISBN/ISSN/Other

  • ISSN: 1354-7798