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:	https://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf
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id	my-uitm-ir.18449
record_format	uketd_dc
spelling	my-uitm-ir.184492022-03-10T07:33:18Z Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid 2015 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 https://ir.uitm.edu.my/id/eprint/18449/ https://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Business and Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
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
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
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
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business and Management
publishDate	2015
url	https://ir.uitm.edu.my/id/eprint/18449/2/TM_PUTRA%20FAIZURRAHMAN%20ZAHID%20BM%2015_5.pdf
_version_	1783733683711115264

Determinants of hedging for Malaysian corporations / Putra Faizurrahman Zahid

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