The Effect of Derivatives Usage on Corporations Risk

• Main Authors: Chiung-Mei Hsieh, 謝瓊梅
• Other Authors: Shu-Ching Chou
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/03427512987927628793

碩士 === 雲林科技大學 === 財務金融系碩士班 === 96 === As globalization, the companies are facing increasing risk and therefore the risk management on firms is getting important. In this study, we investigate the condition of derivatives usage of the public offering firm in Taiwan and the effect of derivatives usage on corporations risk by multiple regression analysis. Our results show that: (1) Most of firms hold derivatives for hedge purpose. Options and Forwards are most held derivatives by firms; (2) The firms hold derivatives for hedge purpose can decrease more corporations risk than firms whose holding is for trading purpose; (3) Firms hold derivatives whose underlying asset is foreign currency for hedge purpose can reduce corporations risk effectively.