Research Information System
in: Strategic Outlook for Innovative Work Behaviours, Hasan Dincer,Serhat Yüksel, Editor, Springer, London/Berlin , Zug, pp.377-391, 2020
Developments
in foreign exchange rates are important for the functioning of financial
markets. Uncertainties and fluctuations in exchange rates negatively affect
financial markets; thus cause the unexpected sudden changes related to stock
market prices and returns. In this paper, exchange rate interactions and
the stock markets in Mexico and Turkey are examined from the period of
2008-2017. Monthly data is used in the study and the multivariate generalized
autoregressive conditional heteroscedastic (MGARCH) method is used as the
econometric method. Obtained the findings in this study showed that there exists an
interaction between stock markets and the exchange rates, both in Mexico and in
Turkey, from 2008-2017. Accordingly, in both countries, exchange rate
volatility has been found to be very effective on the stock market returns. We
conclude that only the performance of listed companies is not enough to
increase the value, but companies should follow the exchange rate market and
plan the human resources properly with an innovative working behaviour.
Departments of risk management and auditing are critical parts of an
organization with qualified employees who have global perspective.