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Malaysian Corporation Analysis on Hedging Determinants and Performance

This study is an empirical assessment on hedging determinants of non-financial corporations in Malaysia. The variables tested in the analysis are extracted from literature of hedging and derivative usage among corporations.The analysis considered 2566 public listed non-financial corporations across...

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Main Authors: Zahid, Putra Faizurrahman, Zulqernain, Nurul Syaqirah, Ahmad, Noryati
Format: Article
Language:English
Published: Universiti Teknologi Mara Cawangan Kelantan 2016
Subjects:
Economics
Financial management. Business finance. Corporation finance
Study and teaching. Research
Online Access:http://ir.uitm.edu.my/id/eprint/29322/1/9
http://ir.uitm.edu.my/id/eprint/29322/
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spelling my.uitm.ir.293222020-04-03T06:14:51Z http://ir.uitm.edu.my/id/eprint/29322/ Malaysian Corporation Analysis on Hedging Determinants and Performance Zahid, Putra Faizurrahman Zulqernain, Nurul Syaqirah Ahmad, Noryati Economics Financial management. Business finance. Corporation finance Study and teaching. Research This study is an empirical assessment on hedging determinants of non-financial corporations in Malaysia. The variables tested in the analysis are extracted from literature of hedging and derivative usage among corporations.The analysis considered 2566 public listed non-financial corporations across industries from the year 2006 to 2010, addressing the result of logistic regression on all samples (all corporations) and industry segregated by cross-sectional analysis using Eviews 7.0. It is found that liquidity, managerial risk aversion on option compensation, blockholder shares, firm market value and firm exposure are the factors for corporations to hedge. In industry segregated analysis, the firm market value is significant for all industries. 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 towards hedge and non-hedge corporations subsamples. 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 are 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 Universiti Teknologi Mara Cawangan Kelantan 2016-11 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/29322/1/9 Zahid, Putra Faizurrahman and Zulqernain, Nurul Syaqirah and Ahmad, Noryati (2016) Malaysian Corporation Analysis on Hedging Determinants and Performance. JOURNAL OF CONTEMPORARY SOCIAL SCIENCE RESEARCH, 1 (1). pp. 58-70. ISSN 0128-2697
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Economics
Financial management. Business finance. Corporation finance
Study and teaching. Research
spellingShingle Economics
Financial management. Business finance. Corporation finance
Study and teaching. Research
Zahid, Putra Faizurrahman
Zulqernain, Nurul Syaqirah
Ahmad, Noryati
Malaysian Corporation Analysis on Hedging Determinants and Performance
description This study is an empirical assessment on hedging determinants of non-financial corporations in Malaysia. The variables tested in the analysis are extracted from literature of hedging and derivative usage among corporations.The analysis considered 2566 public listed non-financial corporations across industries from the year 2006 to 2010, addressing the result of logistic regression on all samples (all corporations) and industry segregated by cross-sectional analysis using Eviews 7.0. It is found that liquidity, managerial risk aversion on option compensation, blockholder shares, firm market value and firm exposure are the factors for corporations to hedge. In industry segregated analysis, the firm market value is significant for all industries. 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 towards hedge and non-hedge corporations subsamples. 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 are 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 Article
author Zahid, Putra Faizurrahman
Zulqernain, Nurul Syaqirah
Ahmad, Noryati
author_facet Zahid, Putra Faizurrahman
Zulqernain, Nurul Syaqirah
Ahmad, Noryati
author_sort Zahid, Putra Faizurrahman
title Malaysian Corporation Analysis on Hedging Determinants and Performance
title_short Malaysian Corporation Analysis on Hedging Determinants and Performance
title_full Malaysian Corporation Analysis on Hedging Determinants and Performance
title_fullStr Malaysian Corporation Analysis on Hedging Determinants and Performance
title_full_unstemmed Malaysian Corporation Analysis on Hedging Determinants and Performance
title_sort malaysian corporation analysis on hedging determinants and performance
publisher Universiti Teknologi Mara Cawangan Kelantan
publishDate 2016
url http://ir.uitm.edu.my/id/eprint/29322/1/9
http://ir.uitm.edu.my/id/eprint/29322/
_version_ 1685650503544864768
score 13.211869

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