Since 2014
The Effect of Hedging with Financial Derivatives on Firm Value at Indonesia Stock Exchange
Economics and Finance in Indonesia
View Archive Info| Field | Value | |
| Title |
The Effect of Hedging with Financial Derivatives on Firm Value at Indonesia Stock Exchange
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| Creator |
Frensidy, Budi
Mardhaniaty, Tasya Indah |
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| Subject |
hedging; derivative instruments; foreign currency risk; interest rate risk; commodity price risk
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| Description |
This study aims to analyze the effect of hedging for the risks of foreign currency, interest rate, and commodity price on firm value as measured by Tobin’s Q. The findings reveal that hedging with derivative instruments is insignificantly related to firm value but significantly varied in financial risks. Hedging for foreign currency risk has a significantly positive relation to firm value, while hedging for interest rate and commodity price risk has no relation. Furthermore, this study provides a novelty compared to previous studies in the utilization of the extent of hedging as the variable to measure the implementation of hedging.
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| Publisher |
Institute for Economic and Social Research
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| Contributor |
—
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| Date |
2019-08-02
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://efi.ui.ac.id/index.php/efi/article/view/614
10.7454/efi.v65i1.614 |
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| Source |
Economics and Finance in Indonesia; Volume 65, Number 1, June 2019; 20-32
2442-9260 0126-155X |
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| Language |
eng
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| Relation |
http://efi.ui.ac.id/index.php/efi/article/view/614/603
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| Rights |
Copyright (c) 2019 Economics and Finance in Indonesia
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