The motive and decision of corporation to hedge: An Empirical evidence of Taiwan electrical industry

• Main Authors: Ying-Hsin, Lee, 李英新
• Other Authors: Y. C, Lu
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/22329122014560517894

碩士 === 銘傳大學 === 金融研究所碩士在職專班 === 89 === Corporation faces a variety of price risks. For explaining the demand of hedge, researchers devoted to find the theoretical reasonable of hedge. The effect of the specific financial market condition on hedging decision is not sure. To understand the motive of hedge, The article analyzes the motive and decision of hedge and the use of derivatives of electrical industry by the factors, including the hypothesis of maximal stockholder''s value and manger''s utility. The scale of corporation has significant effect on the decision of using currency and interest derivatives. The economical scale effect that the cost of getting information and trading to hedge is significant. The EPS volatility of hedger is higher than non-hedger and consistent with the hypothesis of theory. The volatility of EPS has significant effect on the decision of hedging.