The Analysis Hedging and Derivative Instrument on Firm Value

DOI

10.2991/aebmr.k.220701.020How to use a DOI?

Keywords

Hedging; Derivative Instruments; Firm Value

Abstract

This literature review aims to explore and evaluate previous research that focuses on hedging and derivative instruments on firm value. Several frameworks are explored and discussed. In this article, there is some evidence showing that hedging and derivative instruments play a role in firm value, aiming to increase firm value. This article has been reviewed based on research findings, methodology, country studied, and year of publication. The most contributions from these 42 major research articles were from the United States (16,7%) and United Kingdom (11,9%) then the highest publications were conducted by researchers in 2014 and 2017 (28,6%) and 2020 (12%) with empirical study research methods (79%). The results show that companies use hedging to minimize risk because of exchange rate fluctuation. Non-financial companies that carry out hedging activities with derivative instruments to deal with foreign exchange exposure will have a higher firm value. For investors, the results of this study are expected to provide useful information in making investment decisions.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Risa R Gumilang
AU  - Nugraha Nugraha
AU  - Ikaputera Waspada
AU  - Maya Sari
PY  - 2022
DA  - 2022/07/12
TI  - The Analysis Hedging and Derivative Instrument on Firm Value
BT  - Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)
PB  - Atlantis Press
SP  - 93
EP  - 96
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220701.020
DO  - 10.2991/aebmr.k.220701.020
ID  - Gumilang2022
ER  -