The Administration of Foreign Exchange Risk for Sinaloa's Micro Industries that Purchase Imported Inputs: A Case Study
Bernal-Domínguez Deyanira, Dra*
Vargas-Hernández, José G., M.B.A.; PhD**
Frías-Sánchez Jéssica, MAE***
Abstract: The management of exchange risks occurs regularly with the acquisition of hedges of derivative products in the financial markets, according to the theoretical review in publications of scientific articles, books and theses. The objective of this article is to measure the maximum probable loss with the value-at-risk method in the period 2014 to 2016 to analyze the alternative of managing exchange risks through hedging in an industrial micro-enterprise in Sinaloa. The methodology is qualitative with a case study. The contribution of this research work is to measure the maximum probable loss of a microindustrial company that invests in raw materials inventories that vary according to the peso / dollar exchange rate, since there is an absence in this type of publications. The VaR model is applied with real data from the unit of analysis for exchange risk management. The main result confirms that the micro industrial company is not profitable to invest in hedges as an alternative to minimize its exchange risks.
Key words: Business risk, coverage, VaR.
* Facultad de Contaduría y Administración; Universidad Autónoma de Sinaloa, deyanirabernaldominguez@gmail.com
** Research professor, Department of Administration, University Center for economic and Managerial Sciences. University of Guadalajara, México, josevargas@cucea.udg.mx
*** Facultad de Contaduría y Administración; Universidad Autónoma de Sinaloa, Sinaloa. jessicafrias89@hotmail.com