A directional evaluation of corporate executives’ exchange rate forecasts

$53.29 plus tax (Refund Policy)

Buy Article:

Abstract:

We investigate the directional accuracy of exchange rate forecasts by corporate executives. We find that a forecast with a 1-year horizon is valuable for the profitability and unprofitability predictions of manufacturers, although previous studies provide considerable evidence that forecasts with horizons of 1 year and longer are not valuable. However, a forecast is not valuable in predicting an appreciation or depreciation of the exchange rate. Our findings suggest that corporate executives are more concerned about and focused on the impact of the exchange rate on their profitability, rather than the exchange rate itself.

Keywords: C53; E17; F47; directional analysis; forecast evaluation; macroeconomic forecast; market-timing test

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036846.2013.831173

Affiliations: Tokyo University of Science, 500 Shimokiyoku, Kuki, Saitama, 346-8512, Japan

Publication date: January 2, 2014

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more