Institutional investors and foreign exchange risk

Timo Korkeamäki, Danielle Xu

Research output: Contribution to journalArticleScientificpeer-review


We study institutional appetite for stocks with FX exposure, and find variation
among institution types. Institutions that are by their nature more likely to engage inactive management of foreign exchange risk in their portfolio, namely mutual funds and hedge funds seek stocks with foreign exchange exposure. Institutions that are constrained by regulation tend to avoid foreign exchange exposure.
Original languageEnglish
Peer-reviewed scientific journalQuarterly Journal of Finance
Issue number3
Number of pages33
Publication statusPublished - 09.2015
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management


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