Analysis of the Exchange Rate Volatility Influence on the Share Price: Morocco, as Case Study
Analysis of the Exchange Rate Volatility Influence on the Share Price: Morocco, as Case Study
Author(s): El Mehdi Mrhari, Driss DaouiSubject(s): National Economy, Business Economy / Management, International relations/trade, Financial Markets
Published by: Editura Tehnopress
Keywords: Currency Risk Management; Economic Exposure; Exchange Rate Puzzle; Exotic Currency; Exchange Rate Volatility;
Summary/Abstract: The main objective of this article is to check and measure the exchange rate volatility impact on the share price of Moroccan companies listed on the Casablanca stock exchange by using the Vector Error Correction Model. We have got poor results in accordance with the exchange rate Puzzle. However, these results were significant, which confirms the relation between exchange rate volatility and share price. Also, we found out that factor such as the firm size, the business sector and the foreign involvement degree stimulate the exchange rate volatility effect. We have also observed a greater sensitivity toward international currencies compared to exotic currencies.
Journal: Journal of Public Administration, Finance and Law
- Issue Year: 2017
- Issue No: 12
- Page Range: 114-127
- Page Count: 14
- Language: English