Research proposal for PHD in Risk management

A Study of Information Technology Firms ' Performance Efficiency in the face of Exchange Rate Risk using Fuzzy Data Envelopment Analysis Approach

1 .0 Introduction

Multinational Corporations (MNCs ) are exposed to more risks than domestic firms as they operate in a large environment- macro environment , which is a subject to perennial changes . The foreign exchange risk , which is solely associated with conversion rate fluctuations from time to time , is expected to result in significant impact upon firm 's return and eventually on its value . At this juncture the present study is

an attempt to test the efficiency of Information Technology firms in the United Kingdom using Fuzzy Data Envelopment Analysis (DEA ) Approach as a measure to ascertain the effect on firm 's value in the face of foreign exchange rate risk . The study is conducted among selected sample MNCs from the Information Technology Industry in the United Kingdom

2 .0 Statement of the Problem

Foreign exchange exposure and firm 's value is a much discussed among academicians and practitioners and there have been conflicting consensus on this . Many argue that firm 's value and foreign exchange risk are closely associated and the former will affect adversely the latter . For instance , Lewent and Kearney (1990 , He and Ng (1998 , and Williamson (2001 ) find that exchange rate fluctuation affects firm value . However , Jorion (1990 and 1991 , Loudon (1993 Bartov and Bodnar (1994 , and Khoo (1994 ) were of the conclusion that firm value is insensitive to exchange rate fluctuation . Multinational Corporations (MNCs...