Does the type of derivative instrument used by companies impact firm value?

Hoa Nguyen, Robert Faff

    Research output: Contribution to journalArticlepeer-review

    23 Citations (Scopus)

    Abstract

    We explore the relationship between the type of derivative instrument used and firm value, in a sample of Australian firms. Specifically, we examine the impact of the corporate use of swaps, futures, forwards and options, and the extent of such usage, on firm value. Our findings suggest that a 'discount' is most severely imposed on users of swaps.
    Original languageEnglish
    Pages (from-to)681-683
    Number of pages3
    JournalApplied Economics Letters
    Volume17
    Issue number7
    DOIs
    Publication statusPublished - 2010

    Keywords

    • Australia
    • business planning
    • discount

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