Research On The Impact Of Exchange Rate Fluctuations On Lenovo’s Business Performance And Risk Hedging Strategies

As one of the inevitable risks for enterprises engaged in international business,exchange rate risk has been continuously studied,especially in recent years when the change of trade environment is unpredictable.Scholars at home and abroad have different views on whether the exchange rate fluctuations have a significant impact on the business performance of enterprises,which is mainly caused by the different characteristics and nature of enterprises selected as the research object.Therefore,for different countries,regions,industries and even enterprises of different sizes,the means and effectiveness of dealing with the risk exposure of exchange rate fluctuations are different.Therefore,case study has become one of the effective methods to analyze whether different types of enterprises are significantly affected by the exchange rate fluctuations of their major trading currencies.In this paper,Lenovo group is selected as the case study to investigate whether the exchange rate fluctuations of the currency against the local currency dollar have a significant impact on the operating performance of the enterprise,and the specific measures and effects of its financial hedging and operational hedging means are analyzed from the perspective of the exchange rate risk exposure management strategy adopted by Lenovo group.The study found that,on the one hand,the exchange rate fluctuations had no significant impact on the operating performance of Lenovo group.On the other hand,Lenovo group adopts both financial hedging and operational hedging to control the exchange rate risk exposure,and has achieved good results.In addition,the scale of financial hedging of Lenovo group tends to be stable in recent years,and operational hedging gradually plays a more important role.The main contribution of this paper is to study for the first time the degree to which large Chinese multinationals listed in Hong Kong are affected by exchange rate fluctuations when they use us dollar as their accounting currency.In addition,the case studies and empirical analysis methods in previous studies are classified into multiple perspectives.This study may play a certain role for reference in the study of foreign exchange risk management strategies of similar enterprises in China.