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Managing financial risk by using derivatives: A study of Hong Kong listed companies
Author(s)
Date Issued
2013
ISSN
0976-7185 (Print)
2349-2325 (Online)
Citation
ELK Asia Pacific Journal of Finance and Risk Management, Jan2013, vol. 4(1), pp. 1-16.
Description
Open access
Type
Peer Reviewed Journal Article
Abstract
This paper attempts to identify the ways that the Hong Kong companies in the Hang
Seng Index Constituent Stocks manage their financial risk with derivatives. By analyzing the
companies’ annual reports and financial reviews, it is found that 82.6% of these companies used derivatives in 2010. Specifically, 58.7% of them used swaps to hedge interest rate risk, and 54.3% of them used forward contracts to hedge foreign exchange risk. The results are largely consistent with the prediction that companies using derivatives to manage their financial risk.
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Name
T.Y.Hon_ELK2013v4n1.pdf
Size
491.54 KB
Format
Adobe PDF
Checksum
(not present)
(MD5):82c6336f9dc6d2454d0e3e5590c89b53
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