HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT
This paper deals with hedging which is one of the trading techniques in the futures markets and with the role of hedging as a protecting strategy. Indirectly, hedging affects the competitiveness of a company by reducing overall operating expenses and increasing the level of competitiveness at the sa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Business in Osijek
2015-12-01
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| Series: | Ekonomski Vjesnik |
| Subjects: | |
| Online Access: | http://hrcak.srce.hr/file/221361 |
| _version_ | 1797332612134469632 |
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| author | Ivo Šperanda Zoran Tršinski |
| author_facet | Ivo Šperanda Zoran Tršinski |
| author_sort | Ivo Šperanda |
| collection | DOAJ |
| description | This paper deals with hedging which is one of the trading techniques in the futures markets and with the role of hedging as a protecting strategy. Indirectly, hedging affects the competitiveness of a company by reducing overall operating expenses and increasing the level of competitiveness at the same time.
The theoretical fundamentals of the hedging strategy are explained, followed by a survey on relevant theoretical findings and research on hedging and its importance in contemporary economic life. Basic types of risk in firms are clearly described, as well as principal hedging models which are in accordance with the International Financial Reporting Standards.
Finally, the paper deals with the financial aspects of hedging, stressing the role and the importance of the principle of the financial leverage. |
| first_indexed | 2024-03-08T07:51:25Z |
| format | Article |
| id | doaj.art-0543fde048e24e65a67cbb94206fa5f7 |
| institution | Directory Open Access Journal |
| issn | 0353-359X 1847-2206 |
| language | English |
| last_indexed | 2024-03-08T07:51:25Z |
| publishDate | 2015-12-01 |
| publisher | Faculty of Economics and Business in Osijek |
| record_format | Article |
| series | Ekonomski Vjesnik |
| spelling | doaj.art-0543fde048e24e65a67cbb94206fa5f72024-02-02T14:37:40ZengFaculty of Economics and Business in OsijekEkonomski Vjesnik0353-359X1847-22062015-12-01282551565HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENTIvo Šperanda0Zoran Tršinski1University of Dubrovnik, Department of Economics and Business Economics, Dubrovnik, CroatiaAgency for Science and Higher Education, Zagreb, CroatiaThis paper deals with hedging which is one of the trading techniques in the futures markets and with the role of hedging as a protecting strategy. Indirectly, hedging affects the competitiveness of a company by reducing overall operating expenses and increasing the level of competitiveness at the same time. The theoretical fundamentals of the hedging strategy are explained, followed by a survey on relevant theoretical findings and research on hedging and its importance in contemporary economic life. Basic types of risk in firms are clearly described, as well as principal hedging models which are in accordance with the International Financial Reporting Standards. Finally, the paper deals with the financial aspects of hedging, stressing the role and the importance of the principle of the financial leverage.http://hrcak.srce.hr/file/221361hedgingprotectionriskcash flowefficiency |
| spellingShingle | Ivo Šperanda Zoran Tršinski HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT Ekonomski Vjesnik hedging protection risk cash flow efficiency |
| title | HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT |
| title_full | HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT |
| title_fullStr | HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT |
| title_full_unstemmed | HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT |
| title_short | HEDGING AS A BUSINESS RISK PROTECTION INSTRUMENT |
| title_sort | hedging as a business risk protection instrument |
| topic | hedging protection risk cash flow efficiency |
| url | http://hrcak.srce.hr/file/221361 |
| work_keys_str_mv | AT ivosperanda hedgingasabusinessriskprotectioninstrument AT zorantrsinski hedgingasabusinessriskprotectioninstrument |