The Impact of Hedge Strategies on the Company Value ─A Study of Shipping Carrier

• Main Authors: Chan Yu Chiu, 詹玉秋
• Other Authors: Lin Kuang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/18377388548738172034

碩士 === 國立臺灣海洋大學 === 航運管理學系 === 93 === The promotion of Taiwan economic growth depends on international trade, which in turn depends on its shipping development. This research is to explore the risks of the shipping industry, the situation of averting risks when it applies derivative financial merchandise, and to analyze the effect on the corporation’s profit and value to see if the shipping enterpriser adopted risk-averting strategies. The research is to understand: 1. Various risk sources of the shipping industry. 2. Risk-averting strategies, choice of tools, purposes of usage, and the management control effect and outcome. 3. The relation between the size of the shipping corporation and the risk-averting strategies. 4. The effect on profit and value to the shipping company that engages in averting risks. The investigation was conducted by performing questionnaires on 106 shipping companies whereby 49 copies were received in return, a responding rate of 41.51%. According to the questionnaires, the shipping industry can be divided into three different type of corporations, which we compare with and explore their value effect when they face potential risks and engage in risk-averting actions. The conclusions are as follows: 1. Among the risks of the shipping industry, the merchandise price is determined to be the top risk, followed by the market conditions and then general economic factors. 2. The larger corporations will not refuse derivative financial merchandise, and when the risk doubt happens, they will consider positively how to deal with it. The smaller companies will not take any risk-averting movement; they will either pass it onto the consumers or absorb it by themselves. 3. Under the risk management, the larger corporations will adopt derivative financial merchandise to avert risk, but smaller ones will take additional charges to deal with it. 4.As for the value recognition of the corporation, the shipping enterprisers think that the profit-earning capability can stand for the value of the corporation; that is, the more profit they get, the higher value of the corporation. 5. From the analysis above, we can say that the risk-averting strategy is helpful and can elevate the value of a corporation. Of course, the premise must be a proper one without human factor or attitude of speculation.