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

Hoa Nguyen*, Robert Faff

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

23 Citations (Scopus)
55 Downloads (Pure)

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 - May 2010
Externally publishedYes

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