ResearchBib Share Your Research, Maximize Your Social Impacts
Sign for Notice Everyday Sign up >> Login

CORPORATE DERIVATIVES USE AND FIRM VALUE: EVIDENCE FROM PAKISTAN STOCK EXCHANGE

Journal: International Journal of Management (IJM) (Vol.12, No. 3)

Publication Date:

Authors : ;

Page : 1197-1203

Keywords : Derivatives use; Firm value; PROCESS MACRO;

Source : Downloadexternal Find it from : Google Scholarexternal

Abstract

The interlocking of various economies has made it indispensable to cover individual exposures, including commodity prices, currency, and interest rate exposures. Corporate derivatives offer a way out of this situation and allow businesses to cope by entering into derivative contracts. The aim is to investigate the relationship between derivatives use and firm value. A sample of 219 non-financial listed companies from 2011-2019 is chosen. The study revealed that managers use derivatives for speculation, thus having an inverse impact on firm market performance. The firm's specific factors including firm size, age, leverage, liquidity, cash flow and capital expenditure have also significant effect of firm value

Last modified: 2021-06-03 18:38:34