Foreign Currency Derivatives and Firm Value: Evidence from New Zealand

Li, Hao; Visaltanachoti, Nuttawat; Luo, Robin H.

doi:10.4236/jfrm.2014.33010

Cited by 18 publications

(11 citation statements)

References 22 publications

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“…Nur (2013) menyatakan bahwa hedging dengan instrumen derivatif yang dilakukan oleh perusahaan dapat mengurangi eksposur dan menambah nilai perusahaan. Hal ini didukung oleh Li et al (2014) yang menjelaskan bahwa hedging yang dilakukan oleh perusahaan dapat mengurangi kemungkinan perusahaan mengalami kesulitan keuangan dan menjaga kelangsungan usaha dari adanya dampak negatif risiko fluktuasi kurs valuta asing, sehingga mampu mengarah pada nilai pemegang saham yang lebih tinggi. Afza & Alam (2016) menambahkan bahwa hubungan antara hedging dan nilai perusahaan bergantung pada adanya ketidaksempurnaan pasar (market imperfection).…”

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

“…Nilai signifikansi sebesar 0,242 yang lebih besar dari =0,05 menunjukkan bahwa investment opportunity tidak berpengaruh pada nilai perusahaan. Hasil penelitian ini sejalan dengan penelitian oleh Li et al (2014), Ayturk et al (2016), serta Kebon & Suryanawa (2017) yang menemukan bahwa investment opportunity tidak memiliki pengaruh pada nilai perusahaan.…”

Section: Tabel 9 Hasil Analisis Regresi Linear Berganda Pada Model Regresi Semi-logunclassified

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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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Section: Pendahuluanunclassified

Section: Tabel 9 Hasil Analisis Regresi Linear Berganda Pada Model Regresi Semi-logunclassified

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Aktivitas Hedging dengan Instrumen Derivatif dan Nilai Perusahaan

Pramana

Yasa

2020

E-Jurnal Akuntansi

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“…Financial performance was measured using Tobin's Q as the proxy for firm's financial performance. Tobin's Q is calculated as the ratio of the market value of the firm to the replacement cost of its assets however due to limitations in the availability of data , this study used the modified version used by most of the researchers in similar studies like (Wolfe & Sauaia 2003) and (Li, et al, 2014). The modified ratio is calculated by dividing the market value of a company plus debt divided by the value of its total assets.…”

Section: Measurement Of Study Variablesmentioning

confidence: 99%

Foreign Exchange Risk Hedging, Corporate Governance and Financial Performance: Evidence From Kenya

2019

RJFA

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Globalization, Kenya's floating foreign exchange rate regime, and international trade have exposed Kenyan firms to foreign exchange risk. Empirical studies have demonstrated that hedging minimizes cash flow volatility, hence enhancing financial performance. The management of these risks is critical in overall financial management, since its helps increase the financial performance and the overall returns earned by investors. Understanding factors that influence foreign exchange risks hedging is a crucial step to the effectiveness of the overall risk management process. Against this background, this study sought to evaluate the effects of foreign exchange risk hedging, corporate governance and the financial performance of listed companies in Kenya. The target population constituted all the 54 firms that were continuously listed on the Nairobi Securities Exchange during the study period, from 2011 to 2016. The study used longitudinal research design. Secondary data was obtained from financial statements of the listed firms. The data was coded and analysed using descriptive and inferential statistics-correlation and regression-with the aid of STATA software. The feasible generalised least square model was used to test the hypotheses. The results show currency hedging has a positive effect on financial performance. The study also revealed that corporate governance, moderates the relationship between foreign exchange risk hedging and financial performance. In the light of this findings, management should explore the whole repertoire of risk amelioration techniques, particularly those available in the roster of innovative techniques of hedging. In order to take full advantage of such techniques, however, the regulator and the securities exchange must lead from the front by introducing cutting-edge financial instruments. In addition firms should endeavor to strengthen corporate governance which enhances the effectiveness of risk management.

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“…Analysing the benets of foreign currency derivatives usage in 134 nonnancial rms listed on the New Zealand Stock Exchange, Li, Visaltanachoti, and Luo (2014) (Bolton et al, 2011).…”

Section: The Precautionary Motive For Corporate Cash Holdingsmentioning

confidence: 99%

Essays in cash holdings

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Foreign Currency Derivatives and Firm Value: Evidence from New Zealand

Cited by 18 publications

References 22 publications

Aktivitas Hedging dengan Instrumen Derivatif dan Nilai Perusahaan

Aktivitas Hedging dengan Instrumen Derivatif dan Nilai Perusahaan

Foreign Exchange Risk Hedging, Corporate Governance and Financial Performance: Evidence From Kenya

Essays in cash holdings

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