Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid

This study attempts to investigate the hedging determinants of non-finaneial Malaysian corporations by testing several hypotheses on how corporations decided to utilize hedging instruments (derivatives). Selective macroeconomic variables are tested as part of the macro aspect variables for systemati...

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Main Author:	Zahid, Putra Faizurrahman
Format:	Thesis
Language:	English
Published:	2015
Online Access:	http://ir.uitm.edu.my/id/eprint/18449/ http://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf

id	uitm-18449
recordtype	eprints
spelling	uitm-184492019-02-20T03:22:27Z http://ir.uitm.edu.my/id/eprint/18449/ Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid Zahid, Putra Faizurrahman This study attempts to investigate the hedging determinants of non-finaneial Malaysian corporations by testing several hypotheses on how corporations decided to utilize hedging instruments (derivatives). Selective macroeconomic variables are tested as part of the macro aspect variables for systematic risks assessment. It is found that liquidity, managerial risk aversion of option compensation, blockholder shares, market value of corporation, tax preference items and the foreign exposure of firm are the significant factors for Malaysian corporations to hedge, and the only macro aspect variable is interest rate, which contributes to hedging decision. Besides investigating the determinants of hedging issue, this study also examines the financial performance of corporation’s hedging by using ROA and Tobin’s Q performance indicator, on the hedge and nonhedge corporations sub-samples. It is found that hedger and non-hedger corporations have no significant difference in terms of financial performance, except at industry or sector level. It appears that Consumer Product’s ROA, Industrial Product’s ROA and Technology’s ROA to be significantly and positively related to hedging as predicted relationship. Plantation’s Tobin’s Q and Property’s Tobin’s Q also show significant positive relationship to corporations’ hedging activities. 2015 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf Zahid, Putra Faizurrahman (2015) Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
description	This study attempts to investigate the hedging determinants of non-finaneial Malaysian corporations by testing several hypotheses on how corporations decided to utilize hedging instruments (derivatives). Selective macroeconomic variables are tested as part of the macro aspect variables for systematic risks assessment. It is found that liquidity, managerial risk aversion of option compensation, blockholder shares, market value of corporation, tax preference items and the foreign exposure of firm are the significant factors for Malaysian corporations to hedge, and the only macro aspect variable is interest rate, which contributes to hedging decision. Besides investigating the determinants of hedging issue, this study also examines the financial performance of corporation’s hedging by using ROA and Tobin’s Q performance indicator, on the hedge and nonhedge corporations sub-samples. It is found that hedger and non-hedger corporations have no significant difference in terms of financial performance, except at industry or sector level. It appears that Consumer Product’s ROA, Industrial Product’s ROA and Technology’s ROA to be significantly and positively related to hedging as predicted relationship. Plantation’s Tobin’s Q and Property’s Tobin’s Q also show significant positive relationship to corporations’ hedging activities.
format	Thesis
author	Zahid, Putra Faizurrahman
spellingShingle	Zahid, Putra Faizurrahman Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
author_facet	Zahid, Putra Faizurrahman
author_sort	Zahid, Putra Faizurrahman
title	Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
title_short	Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
title_full	Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
title_fullStr	Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
title_full_unstemmed	Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid
title_sort	determinants of hedging for malaysian corporations / putra faizurrahman zahid
publishDate	2015
url	http://ir.uitm.edu.my/id/eprint/18449/ http://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf
first_indexed	2023-09-18T23:00:33Z
last_indexed	2023-09-18T23:00:33Z
_version_	1777418144072073216

Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid

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