Sign In
Not register? Register Now!
Essay Available:
You are here: HomeDissertationLiterature & Language
Pages:
50 pages/≈13750 words
Sources:
40 Sources
Level:
Other
Subject:
Literature & Language
Type:
Dissertation
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 180
Topic:

The Impacts Of Financial Hedging On Firm Value And Performance In The Ict Sector (Dissertation Sample)

Instructions:

The sample explores the effect of hedging on non-financial firms-ICT SECTOR by examining 100 firms

source..
Content:


THE IMPACTS OF FINANCIAL HEDGING ON FIRM VALUE AND PERFORMANCE IN THE ICT SECTOR
Name:
Institution:
Date:
TABLE OF CONTENTS
Contents Page
1: Introduction…………………………………………………………………..................6
1.1:Guiding Hypothesis........................................................................................................10
2: Literature Review and Theory………………………………………………..................12
2.1: The Modigliani and Miller Theorem………………………………………………....12
2.2: The Theories of Capital Asset Pricing Model (CAPM)……………………………….13
2.3: Why Companies hedge ................................................................................................15
2.3.1: Minimizing the Underinvestment Problem……………………………....................15
2.3.2 Managerial Risk Adversion, Compensation, and Hedging………………………......17
2.3.3 Debt and Hedging Policies……………………………………………………………20
2.3.4 Tax Benefits and Hedging Policies…………………………………………………20
2.4 Summary……………………………………………………………………………......31
3. Methodology………………………………………………………………......................32
3.1 Research Approach and Strategy…………………………………….............................32
3.2 Data……………………………………………………………………………………..32
3.3 Research Procedures………………………………………………………....................33
3.4 Statistical Distributions for Diagnostic Tests………………………………..................38
3.5 Limitation…………………………………………………………………....................40
4.Results and Analysis..........................................................................................................44
4.1 Descriptive Statistics.......................................................................................................44
4.2 Pearson Correlation.........................................................................................................48
4.3 Ordinary Least Square Result.........................................................................................51
4.4 Pooled Data Analysis.....................................................................................................53
4.5 Empirical Findings........................................................................................................55
4.5.1 Statistical Test.............................................................................................................56
4.5.2 Hedging and Firm Value Using Multivariate Test.....................................................56
4.5.3 Robustness..................................................................................................................57
4.6 Analysis of the Findings................................................................................................59
5 Conclusion, Implications, Limitations and Recommendations........................................62
5. 1Conclusion.....................................................................................................................62
5.2 Implications...................................................................................................................62
5.3 Limitations and Recommendations...............................................................................64
List of Abbreviations
FTSE-
NASDAQ-
SW-Swaps
OP-Options
FO-Forwards
FU-Futures
CM-Commodity price
FX-Foreign exchange rate
IR-Interest rate
CAPM-Capital Asset Pricing Model
CAPEX- Capital Pricing Exchange
DPS-Dividend Price Share
DW-Durbin-Watson
ICT-Information Communication and Technology
M&M-Modigliani and Miller
APV-adjusted present value
FPO-fixed payment obligations
GMM-Generalized Method of Moments
JSE-Johannesburg Stock Exchange
FCD-Foreign Currency Derivatives
FASB-Financial Accounting Standards Board
EXECUTIVE SUMMARY
Strategic risk management has increased in significance in the past decades, shifting from pure risk mitigation towards value creation. The 2008-09 financial crises have resulted in a new scrutiny to the application of financial derivatives. The financial crisis issues were routed within the unclearly designed US mortgage security whose ratings failed to reflect risk that the holders of mortgage security have undertaken. The objective of the study was to investigate the impacts...

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

Need a Custom Essay Written?
First time 15% Discount!