Derivatives use among non-financial firms listed on the Australian stock exchange.
The consideration of the appropriate use of derivatives by non-financial services firms has become increasingly important as numerous "derivative related disasters" have befallen corporations in the last decade. The purpose of this study was to examine aspects of derivatives use, with a fo...
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| Format: | Others |
| Language: | en |
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2014
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| Online Access: | http://hdl.handle.net10539/14263 |
| Summary: | The consideration of the appropriate use of derivatives by non-financial services firms has become increasingly important as numerous "derivative related disasters" have befallen corporations in the last decade. The purpose of this study was to examine aspects of derivatives use, with a focus on the appropriateness of derivatives use, by listed nonfinancial firms in Australia. The results were compared to benchmarks established by related studies undertaken in the United States. Overall the results seem to indicate that listed non-financial services firms in Australia tend to be more conservative in their management of derivatives and the associated risks than US firms and the appropriate internal controls appear to be enforced. Derivatives are primarily used for the management of financial price risk than for speculative activity. |
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