ISSN 2394-5125
 

Research Article 


ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab.

Abstract
The study undertakes an in-depth study to explain cross-sectional variation of currency exposure
across different time scales involving 15 electronics and electrical corporations in Malaysia from 21st July 2005
until 31st December. Past studies focused on the aggregate measurement of currency exposure which ignored the
potential heterogeneity of investment holding period and created bias in estimation. To address the problem,
discrete wavelet transformation (DWT) approach is employed to decompose a given time series into several
frequency domains. This study finds that the level of currency exposure of the corporations exhibits
heterogeneous trends across different time scales where a high level of exposure is concentrated at a higher time
scale. From the findings, the study suggests that the exchange risk pricing must incorporate time scales effect in
measurement and vigorous foreign exchange risk management routine should be focused primarily on widened
investment interval.

Key words: Multiscale exchange rate exposure; Wavelet analysis, frequency domains


 
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How to Cite this Article
Pubmed Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. JCR. 2020; 7(16): 481-490. doi:10.31838/jcr.07.16.57


Web Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. http://www.jcreview.com/?mno=3597 [Access: April 10, 2021]. doi:10.31838/jcr.07.16.57


AMA (American Medical Association) Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. JCR. 2020; 7(16): 481-490. doi:10.31838/jcr.07.16.57



Vancouver/ICMJE Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. JCR. (2020), [cited April 10, 2021]; 7(16): 481-490. doi:10.31838/jcr.07.16.57



Harvard Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab (2020) ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. JCR, 7 (16), 481-490. doi:10.31838/jcr.07.16.57



Turabian Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. 2020. ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. Journal of Critical Reviews, 7 (16), 481-490. doi:10.31838/jcr.07.16.57



Chicago Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. "ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS." Journal of Critical Reviews 7 (2020), 481-490. doi:10.31838/jcr.07.16.57



MLA (The Modern Language Association) Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab. "ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS." Journal of Critical Reviews 7.16 (2020), 481-490. Print. doi:10.31838/jcr.07.16.57



APA (American Psychological Association) Style

Nurul Fathahiyah Fadhilah Mohd Azhar, Hishamuddin Abdul Wahab (2020) ASSESSING MULTISCALE EXCHANGE RATE EXPOSURE OF ELECTRONIC AND ELECTRICAL FIRMS IN MALAYSIA: AN APPLICATION OF WAVELET ANALYSIS. Journal of Critical Reviews, 7 (16), 481-490. doi:10.31838/jcr.07.16.57