Corporate derivatives use and firm value: Evidence from Turkey

Aytürk, Yusuf; Gurbuz, Ali Osman; Yanik, Serhat

doi:10.1016/j.bir.2016.02.001

Cited by 52 publications

(86 citation statements)

References 27 publications

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“…Ejemplo de ello se desprende del trabajo de Ayturk, Gurbuz y Yanik (2016), realizado para una muestra de empresas turcas, en el que se señala que en economías con baja protección para los inversionistas, los controladores tienen la oportunidad de expropiar riqueza a los accionistas minoritarios, mediante el uso de instrumentos derivados entre otras formas. Tanto Khediri (2010) como Ayturk, Gurbuz y Yanik (2016) indican que, en presencia de fuertes accionistas controladores, el mercado descuenta el valor de la empresa cuando ésta utiliza derivados. Los inversionistas tienden a deducir que las políticas de cobertura se generan no tanto para la administración del riesgo o para aumentar el valor de la empresa, sino debido a que los controladores son aversos al riesgo y pretenden resguardar su propia inversión en la compañía, la cual representaría gran parte de su riqueza privada.…”

Section: Revisión De La Literatura E Hipótesisunclassified

“…En este contexto, la elección de instrumentos es crucial en el manejo de los problemas de endogeneidad. Las variables que presentarían este problema son estructura de propiedad (Andrés, San Martín y Saona, 2004; Pindado y De La Torre, 2004), uso de derivados, rentabilidad y el tamaño de la empresa (Ayturk, Gurbuz y Yanik, 2016), así como endeudamiento y dividendos (Brown, Beekes y Verhoeven, 2011;Setia-Atmaja, 2009). …”

Section: Muestra Variables Y Metodologíaunclassified

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Instrumentos derivados, concentración de propiedad y valor de la firma. Evidencia para Chile

Cid

Bertín

Maquieira³

et al. 2017

El Trimestre

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Background: The use of derivative instruments, as corporate policy to hedge financial risks has a positive impact on the firm value. However, in countries characterized by weak legal protection of the investors' rights and ownership structures highly concentrated, like in Chile, majority shareholders could use this policy to extract wealth from minority shareholders. Methods: Using the Generalized Method of Moments (GMM), this paper analyzes a panel of 133 nonfinancial companies listed on the Santiago de Chile Stock Exchange between 2008 and 2013. Results: The results indicate a positive and statistically significant relationship between the amount of derivatives used and the company value. However, this evidence is conditioned when the majority shareholder (s) keep the control of the company. If the main shareholder or the three major shareholders hold more than 67% of the outstanding shares, then the relationship between the amount of derivatives used and firm value is negative. Conclusion: In analyzing the dynamics between the ownership concentration and the use of derivatives, we findout that when the majority shareholders and the

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Section: Revisión De La Literatura E Hipótesisunclassified

Section: Muestra Variables Y Metodologíaunclassified

Instrumentos derivados, concentración de propiedad y valor de la firma. Evidencia para Chile

Cid

Bertín

Maquieira³

et al. 2017

El Trimestre

View full text Add to dashboard Cite

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“…The panel data method is employed to investigate the influence of the independent variables on the dependent variable using the STATA statistical software, version 14, as it is appropriate for running and analysing panel data regression. The panel data analysis, which is a combination of both cross-section and time series data, has been used by many recent researchers (Ayturk, Gurbuz, & Yanik, 2016;Dawar, 2014;Fosu, 2013;Karim, 2012;Rahim, Yaacob, Alias, & Nor, 2010). To analyze the impact of the corporate financing variables on firm value, this study used the random effect regression models following the results of the Hausman test and the Breusch-Pagan Lagrange multiplier test for the constructed models.…”

Section: Resultsmentioning

confidence: 99%

The Effects of Corporate Financing Decisions on Firm Value in Bursa Malaysia

Chaleeda¹,

Islam²,

Ahmad³

et al. 2019

IJEF

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The primary objective of shareholders and financial managers is generally stated to be the maximization of shareholders' wealth by increasing the firm value. This research was undertaken to investigate the effect of corporate financing decisions on firm value. The research has been carried out using the panel data procedure for a sample of 256 firms from 9 sectors listed on Bursa Malaysia during the period 2000-2015. The study uses Tobin's Q representing firm value for the dependent variable. The corporate financing was measured by leverage (short-term debt to total assets, long-term debt to total assets, total debt to total assets and total debt to total equity) and debt maturity (long-term debt to total debt). Short-term debt to total assets and long-term debt to total assets has a positive significant relationship to firm value. This finding is consistent with the view that leverage and dividends mitigate agency costs of free cash flow problems, therefore, increasing firm value. Total debt to total assets affects firm value negatively. This proves that although there are benefits of debts, there is also the cost of debts. The cost of debt financing arises from the increase in the probability of bankruptcy. Firm value does not depend on the length of debt maturity.

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“…Financial derivatives variables are classified based on hedging design (for hedging purposes or not) measured based on the fair value of derivatives that are recorded as assets or liabilities (Lee, 2017). Ayturk et al (2016) stated that according to the hedge accounting rules in IFRS, companies must recognize changes in the fair value of derivatives as assets, liabilities, or equity in each financial reporting period. PSAK 60 (IAI, 2018) requires that derivatives be recorded as assets or liabilities and reported in the statement of financial position at fair value.…”

Section: Methodsmentioning

confidence: 99%

“…Therefore, derivatives used by companies do not always result in a decrease in company risk. Furthermore, Ayturk, Gurbuz, and Yanik (2016) state that most companies limit information on the use of derivatives. Therefore, many investors find it challenging to read risk management policies and hedging strategies from financial statements and use this information for the benefit of the investment decision process.…”

Section: Hypothesis Developmentmentioning

confidence: 99%