PN 2020-09
Are Marine-protected Areas Sheltered from Plastic Pollution?
RPS 2020-05
Assessment of the Free Irrigation Service Act
Exploring Teachers' Whys: Understanding Motivation Among Teachers in the Philippines
PSR JA 2015-810
Kinship Networks and Resiliency to Flooding of Pagatban Riverside Communities in Negros Oriental
Publication Detail
DLSU-AKI Policy Brief, Volume VII, No. 7: Derivative Initiative: Does the Use of Financial Derivatives Influence Firm Value in the Philippine Context?

Firms use financial derivatives as a way to hedge risky transactions to avoid financial risks. Studies have focused on firmsí use of financial derivatives in developed countries. However, there is limited research done on emerging markets like the Philippines because these economies have only recently adapted advanced reporting standards that obligate the disclosure of the nature and extent of risks resulting from the use of financial instruments. We used Tobinís Q ratio to proxy for firm value and determine the presence of a hedging premium. Because derivatives are used by firms to hedge against currency risks, interest rate risks, and commodity price risks, we hypothesize that the use of financial derivatives by firms has a positive and statistically significant effect on firm value.

DLSU - Angelo King Institute for Economic and Business Studies - De La Salle University
Authors Keywords
Arrastia, Julio Alfonso, D.; Balagot, Christina Angela, N.; Go, Joseph Anthony, C.; Lacuna, Dominique Ann Philomena, V.; derivatives, hedging, risk management, firm value ;
Download PDF Number of Downloads
Published in 2020 and available in the or can be downloaded as full text Downloaded 487 times since November 17, 2020