Do Exchange Rates Affect the Stock Performance of Australian Banks?

Authors

  • Jing Chi Massey University, New Zealand
  • David Tripe Massey University, New Zealand
  • Martin Young Massey University, New Zealand

DOI:

https://doi.org/10.32890/ijbf2010.7.1.3

Keywords:

Exchange rates, Offshore assets, Stock returns, Australia, Bank international expansion

Abstract

It is expected that banks with significant foreign business should be impacted by relative changes in the currency values of the foreign countries where they do business. Using data from January 1997 to March 2007, this study explored this relationship for the four major Australian banks. Contrary to expectations, no significant relationships between Australian bank stock returns and foreign exchange rates were found, raising questions as to the efficiency of stock markets in recognising banks’ foreign exchange exposures arising from their offshore assets and business.

 

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Published

10-03-2010

Issue

Vol. 7 No. 1 (2010): International Journal of Banking and Finance (IJBF) Vol. 7, No.1, 2010

Section

Articles

How to Cite

Chi, J., Tripe, D., & Young, M. (2010). Do Exchange Rates Affect the Stock Performance of Australian Banks? International Journal of Banking and Finance, 7(1), 35-50. https://doi.org/10.32890/ijbf2010.7.1.3

Research impact

Harvested 2026-09-07
3 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2010.7.1.3 OpenAlex W1578930851