An Innovation Swap: Analyzing the Disney Yen Finance Case

Leying Zhou

2025

Abstract

This research based on the background that the Japanese Yen depreciated from ¥229.70/USD to ¥248/USD, causing the Disney’s yen-denominated royalty receipts translated into fewer dollars, reducing the value of Disney’s income. This essay aimed to evaluate all methods Disney had to reduce the foreign exchange rate risk, showing their benefits and downsides, and finally give out the one that is the most suitable for this case, which is the currency swap with the French Utility. By using calculations, we can see the currency swap can reduce borrowing rates and therefore directly help Disney to deal with the FX and long-term debt problems. The meaning of this research is to introduce the innovation swap policy to the public, and maybe give an alternative way of dealing with FX risks to those multinational companies that are currently in a similar situation. The recommended policy in this essay is the currency swap between Disney and the French Utility, which might seem to innovate but is useful to other multinational companies that is currently still struggled with FX risk.

Paper Citation

in Harvard Style

Zhou L. (2025). An Innovation Swap: Analyzing the Disney Yen Finance Case. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 271-276. DOI: 10.5220/0014350900004718

in Bibtex Style

@conference{emiti25,
author={Leying Zhou},
title={An Innovation Swap: Analyzing the Disney Yen Finance Case},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={271-276},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014350900004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - An Innovation Swap: Analyzing the Disney Yen Finance Case
SN - 978-989-758-792-4
AU - Zhou L.
PY - 2025
SP - 271
EP - 276
DO - 10.5220/0014350900004718
PB - SciTePress