As a result of the increasing volatility in financial markets, the use of financial derivative instruments (forward, futures, option, and swap) has become widespread particularly between large firms around the world.Market risk can be grouped into three categories: exchange rate risk, interest rate risk and commodity price risk.By employing financial derivatives, companies can manage these risks. It is required by International Financial Reporting Standards (IFRS) to reveal their financial positions on financial instruments in their financial reports.The related details in financial reports regarding financial derivatives make it possible to do empirical research on the impact of derivative use on firm value. Along with the mixed results on the relationship among hedging and firm value, empirical research that question the impact of hedging on firm operating activities have been unexpectedly missing. In this study, we aim to examine a significant type of firm operations, cross-border mergers and acquisitions, which is well known for changing a firm's financial risk exposure. By studying the effect of hedging on firm performance through cross-border M&As, we aim to find out whether and in what way risk management affects firm performance. With a sample of 537 cross-border mergers and acquisitions
This paper aims to assess whether there is a behavioral bias of Turkish FDI investors in Ethiopia. Besides, it addresses the influence of firm size, investment duration, target customers and amount of investment on the behavioral variables. In order to do so, a survey was conducted on a sample of Turkish FDI investors in Ethiopia which tries to examine their cognitive psychological factors towards their investment decisions. The survey result was analyzed using factor analysis. The statistical findings confirm that some psychological anomalies such as representativeness, herding, regret aversion and mental accounting have been observed on Turkish FDI investors. The regression analysis shows that amount of investment of the firms significantly and positively affects herding, representativeness, regret aversion and mental accounting behaviors. Furthermore, duration of investment in Ethiopia affects their representativeness and mental accounting behavioral biases of investors positively.
In developing countries, currency crises have become a significant threat. The purpose of the paper is to examine the volatility of stock prices during the two recent currency crises in Turkey. The selected companies are the 15 Turkish energy companies listed on the stock exchange.In an atmosphere where economic uncertainties are growing as a result of globalisation; the exchange rate is one of the most critical measures and costs. The aim of this study is to reveal its impact on stock prices of Turkish energy companies. The period of the study covers 12 quarterly periods between 31.03.2018 and 31.12.2020.A multiple regression model was used to investigate the impact of currency fluctuation on the stock prices of energy companies operating in Turkey. Our empirical findings show that during the financial crisis, there was no significant relationship between stock prices and currency rates.
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