Financial hedging with derivatives and its impact on the Colombian market value for listed companies

Giraldo-Prieto, César Augusto; Uribe, Gabriel Jaime González; Bermejo, Cristhian Vesga; Herrera, Diana Carolina Ferreira

doi:10.1016/j.cya.2017.04.009

Cited by 12 publications

(11 citation statements)

References 29 publications

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“…HD it = α 0 + β 1 GO it + β 2 FD it + β 3 DE it + β 4 LV it + β 5 FZ it + β 6 LQ it + β 7 PR it + β 8 DR it + β 9 MO it + ε it Where i and j indicate the company and time, the growth opportunity is used to measure a company's future (Giraldo-Prieto et al, 2017;Widyagoca & Lestari, 2016).…”

Section: Methodsmentioning

confidence: 99%

Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector

Mubarok

Utami

2020

jda

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Hedging is a derivative instrument in the form of actions used to minimize risks due to fluctuations in foreign currencies, interest rates, and commodity prices. This study aims to analyze the factors that influence hedging in agricultural sector companies using the panel data method in the form of quarterly from 7 companies from 2013 to 2019. The study results show growth opportunity, financial distress, debt, leverage, firm size, liquidity, profitability, and dividend payout ratio significantly influence the use of hedging. This study's results indicate that agricultural sector companies as a whole use hedging to protect against future risk exposures. Besides, it is necessary to know the factors that influence making decisions using hedging. This study recommends that companies increase export productivity balanced with appropriate hedging policies to improve company performance.

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Section: Methodsmentioning

confidence: 99%

Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector

Mubarok

Utami

2020

jda

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“…In addition, regulatory reforms decrease the likelihood of hedging, as they aim to induce market stability (Giambona et al 2018). Research also shows that companies with greater exposure to exchange rate risks have higher hedging premiums (Prieto et al 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

The Influence of Corporate Governance on Financial Derivatives Decisions

2022

JEM

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This study investigates corporate governance risk behavior around the financial crises period and its sensitivity to varying levels of financial constraints. The study employs simultaneous-equations methodology to examine firms' capital structure and derivatives usage decisions simultaneously. The sample is split into high and low levels of financial risk to examine impacts of corporate governance on decisions regarding usage of derivatives under both conditions. Further, quantile analysis is preformed to investigate governance responses at different levels of risk. We observe that corporate governance responses vary with the levels of distress. At lower levels, insider shareholders, Chief Executive Officer (CEO) salary, and CEO age influence financial derivatives decisions. However, institutional shareholders, audit committee meetings, CEO bonus and other compensation consistently impact derivatives decisions, irrespective of the level of financial distress. The study suggests that governance mechanisms vary with financial distress levels. Firms could optimally structure their governance mechanisms accordingly. The study shows it is important to incorporate levels of risk in any corporate governance study.

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“…Teori ini menyatakan bahwa perusahaan melakukan aktivitas hedging untuk mengurangi biaya tertentu sehingga dapat mengarah pada pengurangan volatilitas arus kas. Tindakan tersebut selanjutnya akan dapat mendorong peningkatan nilai pemegang saham (Giraldo-Prieto et al, 2017).…”

Section: Pendahuluanunclassified

“…Berdasarkan shareholder value maximization theory, aktivitas hedging mampu meningkatkan nilai pemegang saham, di mana tindakan tersebut akan diapresiasi secara positif oleh pemegang saham maupun investor potensial sehingga dapat mengarah pada peningkatan nilai perusahaan (Li et al, 2014). Hedging dapat mengurangi biaya financial distress, pajak yang diharapkan, dan memitigasi masalah underinvestment (Giraldo-Prieto et al, 2017).…”

Section: Pendahuluanunclassified

Aktivitas Hedging dengan Instrumen Derivatif dan Nilai Perusahaan

Pramana

Yasa

2020

E-Jurnal Akuntansi

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The increase of exchange rate fluctuation pushes firms to form an optimal risk management. Risk management, especially in the form of hedging activity with derivative instrument has moved from pure risk mitigation to value creator for firm. The purpose of this study is to determine the effect of hedging activity with derivative instrument on firm value. This study was conducted on nonfinancial firms listed on Indonesia Stock Exchange during the period of 2013-2017. Sample of 183 firms was obtained through nonprobability sampling technique with purposive sampling method. Data collection was done with nonparticipant observation. Analysis technique used in this study is multiple linear regression analysis. Based on analysis result, hedging activity with derivative instrument has a positive effect on firm value. Keywords: Hedging; Derivative Instrument; Risk Management; Firm Value.

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Financial hedging with derivatives and its impact on the Colombian market value for listed companies

Abstract: Coberturas financieras con derivados y su incidencia en el valor de mercado en empresas colombianas que cotizan en Bolsa

Cited by 12 publications

References 29 publications

Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector

Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector

The Influence of Corporate Governance on Financial Derivatives Decisions

Aktivitas Hedging dengan Instrumen Derivatif dan Nilai Perusahaan

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