“Export under exchange rate risk: The role of market transparency” by Udo Broll
Finance Seminar
Author:
Udo Broll
Technische University at Dresden, Germany
The paper examines the economic role of market transparency on the decision problems of an exporting firm. Transparency is described in terms of a publicly observable signal. With higher transparency, the signal conveys more precise information about the random foreign exchange rate market. We analyze the interaction between market transparency and ex ante expected export, profit and utility of the firm
