Financial derivatives, their use and impact on firm performance and value

Robert Vitík

Ekonomika a Management, 2008, vol. 2008, issue 2

Abstract: This paper wants to give a basic overview of arguments for and against of using the financial derivatives tools in the field of foreign exchange risk management. The case study shows, how the separate hedging instruments have impact on P & L statement. This paper discusses different relationship between the shareholders and management, in the matter of risk management, profit volatility restriction and finally performance measurement of management staff. This essay is focused on question whether hedging transactions influence firm value - stock price. At the conclusion, we discuss a research paper of S & P agency, concerning of relationship between applications of the financial derivatives and rating of companies operating in oil and gas sector.

Keywords: Finanční deriváty; Hodnota firmy; Výkonnost podniku; Forwardy; Řízení rizik; Financial derivatives; Rating; Firm performance; Opce; Firm value (search for similar items in EconPapers)
JEL-codes: F31 G1 G32 (search for similar items in EconPapers)
Date: 2008
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