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Alam Atia (COMSATS Institute of Information Technology, Lahore, Pakistan), Afza Talat (Government Sadiq College Women University Bahalwalpur, Pakistan)
Impact of Derivative Usage on Firm's Risk and Value: a Comparative Analysis of Pakistan and Malaysia
Argumenta Oeconomica, 2017, nr 1 (38), s. 221-242, tab., bibliogr. 63 poz.
Argumenta Oeconomica
Słowa kluczowe
Instrumenty pochodne, Waluta, Stopa procentowa, Wartość przedsiębiorstwa
Derivatives, Currencies, Interest rate, Enterprise value
Pakistan, Malezja
Pakistan, Malaysia
This study empirically examines the effect of derivative usage on firm's risk and value by employing sample data of Pakistani and Malaysian listed companies for the period of 2004- -2010. Supporting the risk management use of derivative instruments, the study finds that the usage of derivative instruments significantly minimizes firm's risk, with respect to operating cash flow variability in both Pakistan and Malaysia, although the extent of risk reduction is higher in Malaysian firms. While considering variability in earning per share as a firm's risk, the findings imply that Pakistani firm's earning per share variability is irrelevant for firm's derivative usage, whereas Malaysian firms are able to minimize such volatility by using derivative instruments. The results show the insignificant effect regarding the relationship of derivative usage with firm's value of Malaysian corporations, indicating that as Malaysia has developed capital market and firms are more geographically diversified in comparison to Pakistan, thus their value relevance of derivative usage are limited. While in the case of Pakistan, the use of derivative instruments significantly enhances firm's value.(original abstract)
Dostępne w
Biblioteka Główna Uniwersytetu Ekonomicznego w Krakowie
Biblioteka Szkoły Głównej Handlowej w Warszawie
Biblioteka Główna Uniwersytetu Ekonomicznego w Katowicach
Biblioteka Główna Uniwersytetu Ekonomicznego w Poznaniu
Biblioteka Główna Uniwersytetu Ekonomicznego we Wrocławiu
Pełny tekst
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