Effects of fluctuation of the foreign exchange rate on the stock performance of cosmetic companies exported to China

Abstract

The study aims to find out the effects of fluctuation of foreign exchange rate on the stock performance of cosmetic companies exported to China. The focus of the study will be addressed on whether the depreciation of the Chinese Yuan over the US dollar will influence the stock performance of American cosmetics. Meanwhile, it will compare the stock performance of cosmetics exported from different countries with the American cosmetics exported to China. Based on the information collected, the hypothesis is that there is a significant relationship between the exchange rate fluctuation and the stock performance of cosmetic companies exported to China. A regression line will be created based on the data collected, which will be much easier for understanding the relationship. The study is important for both perspectives from entrepreneurs and customers as a reference.