The dynamic effect of corporate financial hedging on firm value: The case of Indian MNCs

被引：3
|
作者：
Das, Jyoti Prakash [1 ]
Kumar, Shailendra [1 ]
机构：
[1] Indian Inst Informat Technol, Dept Management Studies, Allahabad 211015, Uttar Pradesh, India
来源：
BORSA ISTANBUL REVIEW | 2023年 / 23卷 / 03期
关键词：
FCD; FDD; Financial hedging; Firm value; FXPROFIT; FOREIGN-CURRENCY DERIVATIVES; RISK-MANAGEMENT-PRACTICES; DETERMINANTS; MARKET; IMPACT; DEBT;
D O I：
10.1016/j.bir.2023.01.010
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper explores the effect of financial instruments for exchange rate hedging on a firm's value in the presence of non-operating profit or loss from foreign exchange transactions. This study uses Tobin's Q ratio as a proxy for firm value and a two-step generalized method of moments (GMM) model to estimate the effect of financial hedging. Our dynamic panel analysis using extensive data on 61 Indian multinational corpo-rations (MNCs) in 2009-2020 shows that financial hedging instruments, such as foreign currency derivatives (FCD) and foreign currency-denominated debt (FDD), enhance firm value by 16.91% and 10.21%, respectively. The results of the robustness test confirm the findings. Copyright & COPY; 2023 Borsa Istanbul Anonim S, irketi. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
引用
收藏
页码：696 / 708
页数：13
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