Usage of Derivatives in Emerging Markets: The Case of Bosnia And Herzegovina

Halilbegovic, Sanel; Mekic, Anida

doi:10.18488/journal.aefr/2017.7.3/102.3.248.257

Cited by 3 publications

(1 citation statement)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(Park & Kim, 2015). Derivative transactions have provided more marketable capital, improved the international business environment, created new jobs and helped counter the decline in unemployment (Halilbegovic & Mekic, 2017). The International Swaps and Derivatives Association (ISDA) reported that 94% of the world's top 500 companies had financial derivatives trading activities.…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing the Use of Financial Derivatives in Chinese Listed Companies

Yang

Teo

et al. 2022

IJAEFA

View full text Add to dashboard Cite

This paper uses A-share chemical companies from 2011 to 2019 to examine the probit model’s ability to provide insight on why China's listed companies choose to use financial derivatives. The empirical results show that reducing the cost of financial distress, avoiding underinvestment and increasing firm size are positive determinants of listed companies' use of financial derivatives. However, the empirical results of this paper are also different from the results of international studies. The reduction of expected taxes, substitution factors and agency problems are not the determinants of listed companies' use of financial derivatives. Few listed Chinese companies use derivatives for hedging which may be the cause of the deviation problem. Further analysis shows that managers' interests are not the motivation for listed companies to use derivatives. Thus, it can be seen that the primary goal of Chinese listed companies using derivatives is to avoid hedging risks. This paper helps to predict the possibility that listed companies make hedging decisions depending on the relevant factors and provides policy guidance for the government to implement a modern development strategy for the derivatives market.

show abstract

Section: Introductionmentioning

confidence: 99%