Foreign Exchange Risk Management in Emerging Markets: The Case of Malaysia

  • Ahmad Shukri Yazid
  • Mohd Shaladdin Muda
Part of the Centre for the Study of Emerging Markets Series book series (CSEM)


The Asian financial crisis of 1997 shook many multinationals in the Asian markets with problems caused by wild fluctuations in the exchange rates of many countries in the region. Many of the multinationals were exposed themselves to the foreign exchange risk, so that the subject became one of hot debate among the top managements.


Exchange Rate Risk Management Foreign Exchange Financial Risk Crisis Period 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Abdullah, A. (1996) Going Global: Cultural Dimensions In Malaysian Management. Kuala Lumpur: Malaysian Institute of Management.Google Scholar
  2. Ankrom, R.K. (1974) ‘Top-Level Approach to the Foreign Exchange Problem’, Harvard Business Review, 52(3), 79–90.Google Scholar
  3. Baldoni, R.J.A. (1998) ‘Best Practices Approach to Risk Management’, TMA Journal, 18(1), 30–4.Google Scholar
  4. Belk, P.A. and M. Glaum (1990) ‘The Management of Foreign Exchange Risk in UK Multinationals: An Empirical Investigation’, Accounting and Business Research, 21(18), 3–13.CrossRefGoogle Scholar
  5. Berkman, H. and M.E. Bradbury (1996) ‘Empirical Evidence on the Corporate Use of Derivatives’, Financial Management, 25(2), 5–13.CrossRefGoogle Scholar
  6. Bodnar, G.M., G.S. Hayt, and R.C. Marstan (1998), A 1998 Wharton Survey of Derivatives by US Non-Financial Firms, Financial Management, 27(winter), 70–91.Google Scholar
  7. Brehmer, B. (1987) Psychology of Risk in Singleton, W.T. and J. Hovden (eds.), Risk and Decisions, New York: Wiley, and Sons, pp. 25–39.Google Scholar
  8. Bukley, P.J. and M.C. Casson (1985) The Economic Theory of The Multinational Enterprise. London: Macmillan.CrossRefGoogle Scholar
  9. Bukley, A. (1996) Multinational Finance, 3rd edition, London, New York, Prentice Hall.Google Scholar
  10. Chiu, D. and S. Foerster (1997) ‘Using Derivatives to Manage Risk’, Ivey Business Quarterly, 61(3), 56–64.Google Scholar
  11. Dolde, W. (1993) ‘The Trajectory of Corporate Financial Risk Management’, Journal of Applied Corporate Finance, 6: 33–41.CrossRefGoogle Scholar
  12. Douglas, M. and A. Wildavsky (1982) Risk and Culture. Berkeley: University of California Press.Google Scholar
  13. Froot, K.A., D.S. Schartein and J.C. Stein (1994) ‘A Framework for Risk Management’, Harvard Business Review, Nov-Dec 1994, 91–102.Google Scholar
  14. Geczy, C., B.A. Minton and C.M. Schoard (1997) ‘Why Firms Use Currency Derivatives’, Journal of Finance, 52(4), 1323–54.CrossRefGoogle Scholar
  15. Glaum, M. (1990) ‘Strategic Management of Exchange Rate Risks’, Long Range Planning, 23(4), 65–72.CrossRefGoogle Scholar
  16. Gomez, E.T. (1999) Chinese Business in Malaysia. Surrey: Curzon Press.Google Scholar
  17. Joseph, N.L. and R.D. Hewins (1997) ‘The Motives for Corporate Hedging among UK Multinationals’. International Journal of Finance and Economic, vol. 2, 151–71.CrossRefGoogle Scholar
  18. Khim, E.M. and D.L.K. Liang (1997) ‘The Use of Derivatives Financial Instruments in Company Financial Risk Management: The Singapore Experience’, Singapore Management Review, 19(2), 17–44.Google Scholar
  19. MacCrimmon, K.R. and D.A. Wehrung (1990) ‘Characteristics of Risk taking Executives’, Management Science, 36(APHP), 422–35.Google Scholar
  20. Madura, J. (2000) International Financial Management, 6th edition, South Western, New York.Google Scholar
  21. Makar, S.D. and S.P. Huffman (1997) ‘Foreign Exchange Risk Management Practices in U.S. Multinationals’, Journal of Applied Business Research, 13(2), 73–86.Google Scholar
  22. Malindretos, J. and D. Tsanacas (1995) ‘Hedging Preferences and Foreign Exchange Exposure Management’, Multinational Business Review, 3(2), 56–66.Google Scholar
  23. New Straits Times (1998) ‘Urgent Need for Local Firms to Enhance Risk Management’, New Straits Times, 20 January 1998, page B3, Kuala Lumpur.Google Scholar
  24. Oldfield, G.S. and A.M. Santomero (1997) ‘Risk Management in Financial Institutions’, Sloan Management Review, 39(1), 33–46.Google Scholar
  25. Rahardjo, K. and M.A. Dowling (1998) ‘A Broader Vision: Strategic Risk Management’, Risk Management, 45(9), 44–50.Google Scholar
  26. Rodriguez, R.M. (1980) Foreign Exchange Management in U.S. Multinationals. Lexington, MA: Lexington.Google Scholar
  27. Saunders, M., P. Lewis, et al.(1997) Research Methods for Business Students. London: Pitman.Google Scholar
  28. Smithson, C.W., Clifford W. Smith et al. (eds) (1995) Managing Financial Risk – A Guide to Derivative Products, Financial Engineering, and Value Maximization. Irwin, IL: Barr Ridge.Google Scholar
  29. Vaus, D.A.D. (1993) Surveys In Social Research. London: University College of London Press.Google Scholar
  30. Wallace, J. (1998) ‘Best Practices in Foreign Exchange Risk Management’, TMA Journal, 18(6), 48–55.Google Scholar

Copyright information

© Ahmad Shukri Yazid and Mohd Shaladdin Muda 2005

Authors and Affiliations

  • Ahmad Shukri Yazid
  • Mohd Shaladdin Muda

There are no affiliations available

Personalised recommendations