The Characteristics Of Users Derivative Company Towards The Company’s Value

Ekadjaja, Henny Margarita

doi:10.24912/ja.v23i1.460

“…show that the variables return on assets and company size have a significant positive effect on the company value of derivative users. Meanwhile, capital expenditure and dividend yields show no significant influence on company value and the leverage variable shows a significant negative influence on company value (Ekadjaja et al, 2019).…”

Section: Introductionmentioning

confidence: 85%

Hedging Training for Export and Import Business

Ekadjaja,

Theja,

Wijaya

2023

J. of Innovation Community Engagement

0

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Globalization causes changes and provides convenience in trading activities between countries, exports, and imports. This community service program was conducted for a company engaged in the field of iron trading, which deals with imported products from Japan, America, Europe, China, and Taiwan. The main problem faced by this community service partner was the profit uncertainty due to fluctuations in the foreign exchange market. As a way to avoid currency exchange rate uncertainty, companies can hedge. One of the hedging activities carried out by company management in dealing with fluctuations in foreign exchange rates is the alternative use of derivative instruments. The method for implementing the community service activities was in the form of onsite training which was divided into two sessions. In the first session, the community service team gave a lecture on a general overview of hedging. In the second session, the community service team carried out a simulation of calculating the costs of hedging using appropriate tools. This community service program provides results in the form of developing partner's know-how that provides benefits to mitigate risk through hedging capabilities. Based on the simulation results using the hedging cost calculation tool, partners can see that hedging in the money market is more profitable than forward contracts.

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“…The present work aims to address this research gap. In their study, Ekadjaja and Ekadjaja (2019) [11] examined the correlation between derivative variables and the valuation of companies. The researchers utilised a comprehensive sample of all companies listed on the Indonesia Stock Exchange during the time frame of 2014 to 2016.…”

Section: Empirical Reviewmentioning

confidence: 99%

Hedge accounting and the value of manufacturing firms in Nigeria

Ukpong,

Akpan,

Ukpong

et al. 2023

Asian J. Manage. Commerce

0

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The study was conducted to examine the influence of hedge accounting variables on firm value of listed manufacturing firms in Nigeria. This was conceived due to the fact that the business environment is volatile, complex, multifaceted and risky and uncertainties being the order of the day, since most of the assets and liabilities of manufacturing companies in Nigeria have derivative features. Ex-post facto research design was adopted in the study using Secondary data obtained from the annual reports of the 42 sampled listed manufacturing firms for the period 2013 to 2022, the nature of the data was panel. Market value of the firms was the dependent variable, while exchange rate, interest rate, and leverage were the independent variables. Data were analyzed using Ordinary Least Squares (OLS) regression technique. Results revealed that exchange rate and interest rate were statistically significant (P-value 0.0005 and 0.0072) while leverage was not (P-value 0.5509). The coefficient of variation was 0.9603%, meaning the variables of the study account for 96.03% of the variation in firm value while 3.97% by other variables not captured in the model. It was concluded that, hedge accounting practices influence firm value of listed manufacturing companies in Nigeria. It was recommended that hedge accounting practices be standardized to reduce incidences of incurring excessive losses.

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Untitled

2023

Asian J. Manage. Commerce

0

View full text Add to dashboard Cite

The study was conducted to examine the influence of hedge accounting variables on firm value of listed manufacturing firms in Nigeria. This was conceived due to the fact that the business environment is volatile, complex, multifaceted and risky and uncertainties being the order of the day, since most of the assets and liabilities of manufacturing companies in Nigeria have derivative features. Ex-post facto research design was adopted in the study using Secondary data obtained from the annual reports of the 42 sampled listed manufacturing firms for the period 2013 to 2022, the nature of the data was panel. Market value of the firms was the dependent variable, while exchange rate, interest rate, and leverage were the independent variables. Data were analyzed using Ordinary Least Squares (OLS) regression technique. Results revealed that exchange rate and interest rate were statistically significant (P-value 0.0005 and 0.0072) while leverage was not (P-value 0.5509). The coefficient of variation was 0.9603%, meaning the variables of the study account for 96.03% of the variation in firm value while 3.97% by other variables not captured in the model. It was concluded that, hedge accounting practices influence firm value of listed manufacturing companies in Nigeria. It was recommended that hedge accounting practices be standardized to reduce incidences of incurring excessive losses.

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The Characteristics Of Users Derivative Company Towards The Company’s Value

Cited by 4 publications

References 17 publications

Hedging Training for Export and Import Business

Hedging Training for Export and Import Business

Hedge accounting and the value of manufacturing firms in Nigeria

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