The Volatility of Exchange Gains and Losses and Enterprise Hedging Strategy Performance-An Example of a TSE-Listed Company

• Main Authors: Ya-Yun Yang, 楊雅雲
• Other Authors: Wo-Chaing Lee
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/z7k3w5

碩士 === 淡江大學 === 財務金融學系碩士在職專班 === 106 === The risk of exchange rate fluctuations has a significant and critical impact on corporate profits and investment returns. Analyze and assess the fluctuation of exchange gains and losses and the risk aversion performance of the company, from which we hope to understand the fluctuation of exchange gains and losses, and whether the exchange rate-related risks arising from the conduct of commercial transactions by a domestic listed company are properly hedged through foreign exchange derivatives. The method of hedging strategies effectively avoids risks that arise when exchange rates change. And how to apply strategies to reduce the exchange rate changes caused by corporate risk research. This article takes the fluctuation of foreign exchange gains and losses of a listed company in Taiwan as the research object. The sample data selection time is from January 2011 to December 2017. Empirically, we use the Quantile Regression (QR) model to explore whether a company''s response to a hedging operation can avoid its risk when faced with exchange rate fluctuations. The empirical results of this paper show that: 1. Exchange rate fluctuations and import and export exchange gains and losses are positive and significant; and as the weight increases, the greater the volatility of the exchange rate of the Italian letter, the greater the profit and loss arising from the purchase and sales of the company. 2. There is a negative and significant relationship between exchange rate fluctuations and the gains and losses from the use of derivative hedges, and the larger the amount, the greater the amount; the exchange rate fluctuations should use derivative products to avoid losses. It will be more efficient; and the empirical results of this paper can also be used as a reference for the practical operation of corporate finance personnel..