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The Exposure of French and South Korean Firms to Exchange Rates and the COVID-19 Pandemic: Evidence from the Stock Market

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  • Willem THORBECKE
Abstract
Rogoff (2020) predicted that the U.S. dollar will depreciate and that exchange rate volatility will return. The coronavirus crisis has also roiled the world economy. This paper uses stock returns to investigate the exposure of French and Korean firms to exchange rate appreciations and the pandemic. Both France and Korea are major exporters, but Korea has managed the crisis better than France. The results indicate that Korean firms have also come through the pandemic better than French firms. The findings also indicate that the Korean economy is less exposed to appreciations than the French economy. The paper concludes with suggestions to increase firms' resilience to these twin shocks.

Suggested Citation

  • Willem THORBECKE, 2021. "The Exposure of French and South Korean Firms to Exchange Rates and the COVID-19 Pandemic: Evidence from the Stock Market," Discussion papers 21017, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:21017
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    References listed on IDEAS

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    Cited by:

    1. Kumeka, Terver Theophilus & Uzoma-Nwosu, Damian Chidozie & David-Wayas, Maria Onyinye, 2022. "The effects of COVID-19 on the interrelationship among oil prices, stock prices and exchange rates in selected oil exporting economies," Resources Policy, Elsevier, vol. 77(C).
    2. Thorbecke, Willem, 2022. "Understanding the transmission of COVID-19 news to French financial markets in early 2020," International Economics, Elsevier, vol. 170(C), pages 103-114.
    3. Willem THORBECKE, 2021. "Understanding the Transmission of COVID-19 News to French Financial Markets," Discussion papers 21037, Research Institute of Economy, Trade and Industry (RIETI).

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