The impacts of RMB appreciation on the business performance of foreign-related enterprises

摘要

The appreciation of RMB has impacts on both import and export trades and the value of firm, which is to some extent reflected in its impacts on business performance. This paper focuses on the impacts of RMB appreciation on the performance of foreign-oriented enterprises. Empirical studies have shown that: RMB appreciation and earnings per share of the corporate are significantly negatively correlated, which means that RMB appreciation has negative impacts on the operating performances of foreign enterprises. This situation is presented in both export-oriented enterprises and import-oriented companies. How to eliminate the negative impact should be concerned by foreign-oriented enterprises and government departments.