The Characteristics and Influencing Factors of Foreign Exchange Risk Exposure in China's Agricultural Industry Chain
This study collects data on Chinese agricultural listed firms from 2016 to 2022 and fluctuations in the RMB exchange rate.Based on the asymmetric measurement model of RMB exchange rate fluctuations,this study investigates the characteristics and influencing factors of foreign exchange risk exposure in China's agricultural industry chain.This study finds that the foreign exchange risk exposure in each stage of the agricultural industry chain exhibits asymmetric characteristics under the background of the RMB exchange rate's bidirectional fluctuations.As the production relationship progresses,the foreign exchange risk exposure increases.The agricultural industry chain presents favorable foreign exchange risk exposure when RMB exchange rate depreciates and adverse foreign exchange risk exposure when RMB exchange rate appreciates,while the adverse foreign exchange risk exposure of the agricultural industry chain mainly manifested in the processing and distribution stage.This study further analyzes the influence of innovation ability,financial hedging and operational hedging on the exposure of China's agricultural industry chain to foreign exchange risks from three dimensions:product strategy,financial strategy,and operational strategy.This study finds that when the RMB exchange rate appreciates the innovation capability and financial hedging of agricultural firms in the production factor supply stage significantly reduce their foreign exchange risk exposure.The operation hedging of agricultural firms in the cultivation and breeding stage significantly reduces their foreign exchange risk exposure.The innovation capability,financial hedging,and operational hedging of agricultural firms in the processing and distribution stage significantly reduce their foreign exchange risk exposure.When the RMB exchange rate depreciates,the operational hedging of agricultural firms in the production factor supply stage significantly reduces their foreign exchange risk exposure.The financial hedging of agricultural firms in the cultivation and breeding stage significantly increases their foreign exchange risk exposure.The financial hedging of agricultural firms in the processing and distribution stage significantly reduces their foreign exchange risk exposure,but the operational hedging adopted by these firms significantly increases their foreign exchange risk exposure.The results of this study indicate that in the context of the RMB exchange rate's bidirectional fluctuations,understanding and preventing foreign exchange risks in China's agricultural industry chain requires consideration of both the bidirectional characteristics of the RMB exchange rate and the heterogeneity of each stage in the agricultural industry chain.
Agricultural Industry ChainForeign Exchange ExposureAgricultural Risk ManagementRMB Exchange Rate
万方数据
维普
