The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics
Corporate managers are the central figures of corporate activity who can control the strategic direction of companies. The company’s use of financial derivatives can avoid risks and has an important impact on the value of the company. This study examines A-share listed firms in Shanghai over the per...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-12-01
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| Series: | International Journal of Financial Studies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7072/11/1/2 |
| _version_ | 1797858410719346688 |
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| author | Ao Yang Wenqi Li Brian Sheng Xian Teo Jaizah Othman |
| author_facet | Ao Yang Wenqi Li Brian Sheng Xian Teo Jaizah Othman |
| author_sort | Ao Yang |
| collection | DOAJ |
| description | Corporate managers are the central figures of corporate activity who can control the strategic direction of companies. The company’s use of financial derivatives can avoid risks and has an important impact on the value of the company. This study examines A-share listed firms in Shanghai over the period 2011–2020, uses an OLS panel and a moderating effects model, and investigates the impact of financial derivatives on firm value from the perspective of managers’ characteristics. We find that financial derivatives can significantly increase the enterprise value of Chinese listed companies, while exchange rate derivatives have a stronger impact on enterprise value. We also find that the higher the proportion of managers who hold shares and have a financial background, the better the effect of firms using financial derivatives. These research results are of great significance to the application of financial derivatives and provide companies with risk management decisions after COVID-19. |
| first_indexed | 2024-04-09T21:12:56Z |
| format | Article |
| id | doaj.art-5cb26d34a54440fda8e5805a4d4e4f5b |
| institution | Directory Open Access Journal |
| issn | 2227-7072 |
| language | English |
| last_indexed | 2024-04-09T21:12:56Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj.art-5cb26d34a54440fda8e5805a4d4e4f5b2023-03-28T13:47:18ZengMDPI AGInternational Journal of Financial Studies2227-70722022-12-01112210.3390/ijfs11010002The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial CharacteristicsAo Yang0Wenqi Li1Brian Sheng Xian Teo2Jaizah Othman3Graduate School of Management, Management and Science University, Shah Alam 40100, MalaysiaSchool of Economics and Trade, Henan University of Technology, Zhengzhou 450001, ChinaGraduate School of Management, Management and Science University, Shah Alam 40100, MalaysiaFaculty of Business Management and Professional Studies, Management and Science University, Shah Alam 40100, MalaysiaCorporate managers are the central figures of corporate activity who can control the strategic direction of companies. The company’s use of financial derivatives can avoid risks and has an important impact on the value of the company. This study examines A-share listed firms in Shanghai over the period 2011–2020, uses an OLS panel and a moderating effects model, and investigates the impact of financial derivatives on firm value from the perspective of managers’ characteristics. We find that financial derivatives can significantly increase the enterprise value of Chinese listed companies, while exchange rate derivatives have a stronger impact on enterprise value. We also find that the higher the proportion of managers who hold shares and have a financial background, the better the effect of firms using financial derivatives. These research results are of great significance to the application of financial derivatives and provide companies with risk management decisions after COVID-19.https://www.mdpi.com/2227-7072/11/1/2financial derivativeshedgingenterprise valuemanager characteristics |
| spellingShingle | Ao Yang Wenqi Li Brian Sheng Xian Teo Jaizah Othman The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics International Journal of Financial Studies financial derivatives hedging enterprise value manager characteristics |
| title | The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics |
| title_full | The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics |
| title_fullStr | The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics |
| title_full_unstemmed | The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics |
| title_short | The Impact of Financial Derivatives on the Enterprise Value of Chinese Listed Companies: Moderating Effects of Managerial Characteristics |
| title_sort | impact of financial derivatives on the enterprise value of chinese listed companies moderating effects of managerial characteristics |
| topic | financial derivatives hedging enterprise value manager characteristics |
| url | https://www.mdpi.com/2227-7072/11/1/2 |
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