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

页码：696 / 708

页数：13

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