|Author Name||Willem THORBECKE (Senior Fellow, RIETI)|
|Creation Date/NO.||March 2021 21-E-017|
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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.
Published: Thorbecke, Willem, 2021. "The exposure of French and South Korean firm stock returns to exchange rates and the COVID-19 pandemic," Journal of Risk and Financial Management, Volume 14, Issue 4, 154.