Omar, Abdullah and Taufil Mohd, Kamarun Nisham and Ahmad, Norzalina (2017) Determinants of hedging: a review of theoretical studies. Journal of Insurance and Financial Management, 2 (5). pp. 92-101. ISSN 2371-2112
Preview |
PDF
Available under License Attribution 4.0 International (CC BY 4.0). Download (276kB) | Preview |
Abstract
Hedging instruments are deemed as value enhancing tool for both financial and non financial firms. The aim of this study is to highlight those theoretical studies which are written in context of hedging determinants. Theoretical studies argued that in a world with no taxes, no transaction costs, and with fixed investment policies, hedging with derivatives is irrelevant to firm value. However, some studies suggests that derivative instruments can increase firm value when the premises of a perfect market have been relaxed, since they can eliminate corporate tax liabilities, financial distress costs, dependence on costly external financing, and agency costs.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Derivatives, Hedging, Financial Risk |
Subjects: | H Social Sciences > HG Finance |
Divisions: | School of Economics, Finance & Banking |
Depositing User: | Mrs. Norazmilah Yaakub |
Date Deposited: | 25 Jul 2019 02:57 |
Last Modified: | 25 Jul 2019 02:57 |
URI: | https://repo.uum.edu.my/id/eprint/26253 |
Actions (login required)
![]() |
View Item |