ISSN: 2225-8329
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The purpose of this study is to analyze the exposure of the specific exchange rate to the sectors due to the changes in the exchange rate regimes. To evaluate the exposure and the consequence of policy change, two models were used. The data was from Malaysian listed firms' stock returns and foreign exchange rates. The secondary data of 128 firms were chosen using the Bloomberg database from Bursa Malaysia. The firm’s stock price and exchange rates were collected from January 1990 to July 2010. 20 years data were specifically chosen to obtain the exchange rate regime cycle before, during, and after pegging. The monthly returns and excess returns were computed from the data collected. As a result, the notion that no firms were exposed to the USD during the pegged period is no longer valid. The finance sector showed a significant exposure against the USD. This was probably due to the movement of the MYR against the USD. The exposure to the firms may also have been influenced by the cross-exchange rate of MYR with other currencies.
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In-Text Citation: (Shazali et al., 2023)
To Cite this Article: Shazali, K. H. I., Jusoh, A. A., Moksin, H., & Zaghlol, A. K. (2023). Switching in Exchange Rate Regime: Impacts and Exposure to Sectors in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 327–338.
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