impact of derivative hedging on risk: evidence from China

The use of derivatives by companies is now increasing and there is a lot of research on the use of derivatives to hedge risk by European and American companies, but relatively little research on Asian companies. This paper selects company data for 2020 and 2021 from 327 companies listed on the Hong...

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Main Author: PAN, YIFAN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2022
Online Access:https://eprints.nottingham.ac.uk/70012/
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author PAN, YIFAN
author_facet PAN, YIFAN
author_sort PAN, YIFAN
building Nottingham Research Data Repository
collection Online Access
description The use of derivatives by companies is now increasing and there is a lot of research on the use of derivatives to hedge risk by European and American companies, but relatively little research on Asian companies. This paper selects company data for 2020 and 2021 from 327 companies listed on the Hong Kong Stock Exchange, collects information on the use of derivatives by reading the companies' annual reports, and performs regression analysis in conjunction with the companies' risk and other data. The study finds that the use of derivatives can both reduce and increase company risk. Through further sub-group studies, it was found that the use of derivative hedging was more effective in reducing risk when the company's risk was higher and that the effect of hedging risk became less pronounced when the statistical time lengthened. The findings of this paper are based on a study of Asian companies. A new research perspective is provided to study the impact of derivatives on corporate risk.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-700122023-06-21T14:04:16Z https://eprints.nottingham.ac.uk/70012/ impact of derivative hedging on risk: evidence from China PAN, YIFAN The use of derivatives by companies is now increasing and there is a lot of research on the use of derivatives to hedge risk by European and American companies, but relatively little research on Asian companies. This paper selects company data for 2020 and 2021 from 327 companies listed on the Hong Kong Stock Exchange, collects information on the use of derivatives by reading the companies' annual reports, and performs regression analysis in conjunction with the companies' risk and other data. The study finds that the use of derivatives can both reduce and increase company risk. Through further sub-group studies, it was found that the use of derivative hedging was more effective in reducing risk when the company's risk was higher and that the effect of hedging risk became less pronounced when the statistical time lengthened. The findings of this paper are based on a study of Asian companies. A new research perspective is provided to study the impact of derivatives on corporate risk. 2022-09-05 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/70012/1/20342537_BUSI4020%20UNUK_2021_22.pdf PAN, YIFAN (2022) impact of derivative hedging on risk: evidence from China. [Dissertation (University of Nottingham only)]
spellingShingle PAN, YIFAN
impact of derivative hedging on risk: evidence from China
title impact of derivative hedging on risk: evidence from China
title_full impact of derivative hedging on risk: evidence from China
title_fullStr impact of derivative hedging on risk: evidence from China
title_full_unstemmed impact of derivative hedging on risk: evidence from China
title_short impact of derivative hedging on risk: evidence from China
title_sort impact of derivative hedging on risk: evidence from china
url https://eprints.nottingham.ac.uk/70012/