Family-controlled Firms and Derivatives Usage Decision

• Main Authors: CHANG, YING-CHIAO, 張盈喬
• Other Authors: CHEN, CHING-LUNG
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/673udz

碩士 === 國立雲林科技大學 === 會計系 === 107 === In recent years, family-controlled firms have become very common around the world, and they have significant effects on economic development in Taiwan. Family-controlled firms devote much attention to long-term perspective and succession, which in turn, focus on risk management. On the other hand, more and more derivatives come out, and firms can use then to hedge risk and/or to gain short-term interests through market views. Based on the unbalanced-panel data regression, this study wants to figure out the relationship between family-controlled firms and the usage of derivatives. Moreover, this study divides the derivatives usage motives into hedging-purpose and non-hedging-purpose (speculating-purpose) and examines whether the association between family-controlled firms and the usage of derivatives reveals distinctive patterns in hedging-purpose and non-hedging-purpose decisions. The data include the listed firms from 2009 to 2017 in Taiwan Stock Exchange Corporation. The empirical result indicates that, comparing to non-family-controlled firms, family-controlled firms tend to use more hedging-purpose derivatives and avoid using non-hedging-purpose (speculating-purpose) derivatives. The result suggests that family-controlled firms care more about long-term development and risk management and is consistent with the convergence-of-interest hypothesis. This study runs several diagnostic checks and reveals the results are robust to these further examinations.