Publicação
"Does hedging foreign exchange risk increase firm value for european utility companies?"
| Resumo: | As postulated by Modigliani and Miller (1958), hedging should not have an impact on firm value; however, violations to the perfect market’s assumptions may indicate otherwise .This paper looks at Europe’s Largest Utility companies, relying on regression models that account for control variables, as well as fixed firm and time effects, in an effort to empirically demonstrate this impact. An ANOVA table is also used to account for differences in average firm value for hedgers and non-hedgers of foreign exchange. The results from this analysis shows a limited positive impact, only statistically significant at a 10% level. |
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| Autores principais: | Santos, Catarina Fonseca de Botica |
| Assunto: | Firm value Foreign exchange Hedging Risk management |
| Ano: | 2020 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso embargado |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | As postulated by Modigliani and Miller (1958), hedging should not have an impact on firm value; however, violations to the perfect market’s assumptions may indicate otherwise .This paper looks at Europe’s Largest Utility companies, relying on regression models that account for control variables, as well as fixed firm and time effects, in an effort to empirically demonstrate this impact. An ANOVA table is also used to account for differences in average firm value for hedgers and non-hedgers of foreign exchange. The results from this analysis shows a limited positive impact, only statistically significant at a 10% level. |
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