Open AccessDerivatives Usage: Value-Adding Or Destroying?
Author(s) -
John Naito,
Judy Laux
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v9i11.6499
Subject(s) - notional amount , univariate , value (mathematics) , multivariate statistics , business , enterprise value , actuarial science , econometrics , accounting , economics , finance , mathematics , statistics
The following article tests the wealth-building nature of derivatives usage in non-financial firms. Investigating 434 firms and employing univariate and multivariate tests, it uses both the fair values and notional values of firms derivatives contracts to determine whether derivatives usage enhances or destroys firm value.