Case Study of the Evolution of Exposure Risk Hedging Strategy Since the Asian Crisis: Korean Automobile Companies

• 발행기관: 한국무역연구원
• 저자명: 김동균(Dong-Gyun Kim)
• 간행물 정보: 『무역연구』제16권 제6호, 29~46쪽, 전체 18쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2020.12.30

영문 초록

Purpose - This study aims to derive the optimal exposure risk hedging strategy focusing on the recent business environment through practical case studies of automobile firms and previous research review. Our study is verified on which auto firms have coped with diversified risks and problems with a focus on managing exchange rate exposure. Design/Methodology/Approach - We selected and analyzed six automobile firms that produce finished cars. The important results are summarized in five points through an empirical practice case study. Our paper estimates the transformation of foreign transaction a/c, such as foreign currency assets/profits account, industry specifics. We also supplement for an incomplete estimation process with a real case study. In addition, this study is complemented with the analyzing 4th period classifications considering time in the business situation. Findings - Korea automobile firms’ internal and external factors were affected. Internal factors consist of production capacity, working operation rate on market demand and self-manufacturing capacity. First, the estimated results for the production capacity and operation rate of the Korean automobile firms are 94.2 and 88.1 during the entire analysis period. Second, foreign currency assets of the Korean automobile firms are still in the negative (-782 billion Won) despite the decreasing negative position of the foreign assets. This is because foreign liabilities still exceed foreign assets. Third, in relation to the efficiency of foreign asset management, the FER value of the automobile firms is 8.1 over all periods. Fourth, it can be seen that the foreign profits of the automobile firms are unstable and volatile, the value of the estimated deviation of the domestic-owned automobile firms is estimated to 10 over the entire periods. Research Implications - The exposure risk hedging approach should shift from a financial direct strategy to a diversified indirect strategy that includes non-financial methods (strategic decision-making process, integrated outsourcing systems, employee commitment, etc.).

목차

Ⅰ. Introduction

Ⅱ. Case Study Framework and Hypothesis

Ⅲ. Empirical Method and Data

Ⅳ. Analysis Results

Ⅴ. Conclusion

References

키워드

Exposure Risk Foreign Asset Efficiency Ratio Hedge Strategy Variance Analysis