Firm Valuation and Asymmetric Foreign Exchange Exposure

This book provides corporate financial risk managers with the information they need to understand and manage their companies‘ foreign exchange (FX) exposures. The author provides a comprehensive treatment of this topic, combining the latest theoretical developments, empirical evidence, and applications. Specific topics include: Identification of the factors that determine a company’s exposure to exchange rate fluctuations. Assessment of the impact of exchange rate movements on the value of companies and their competitive positions. Real options valuation and FX exposure measurement. Strategic real options analysis, firm value creation, and FX exposure management. Exchange-rate related corporate pricing strategies. Managing FX exposures in an Integrated Risk Management framework - how to use real options, financial flexibility options, natural hedges, and derivatives, in a complementary and value maximizing way. Estimation of FX exposures with linear and non-linear econometric methods. Dr. Thierry Leutwiler is a Consultant in the Risk and Compliance practice of LogicaCMG Consulting in London. He has consulted for major banks across Europe on managing financial risks and implementing risk management systems. He holds a BSc and Master of Science in Economics from HEC, University of Lausanne, in Switzerland, and a Doctorate in financial risk management from the European Business School in Oestrich-Winkel, Germany, and has been a Research Affiliate in Econometrics at New York University.