The Impact Of Financial Derivatives Application On Enterprise Value Of Listed Companies

Along with the development of treasury bond futures, stock index futures and other derivatives, and interest rate, exchange rate market-oriented gradually, more and more companies hope to choose derivative products to hedge in the process of production and operation. Because the development of China’s derivatives market is not very mature, companies are lack of relevant experience, and in the past few years, from time to time, lots of companies use derivatives and loss, that have led to numerous listing corporations in China are still holding a wait and see attitude for the use of derivatives. This paper aims to explore the status quo of China’s listing Corporations using financial derivatives, and use the empirical method to analyze using financial derivatives whether can effectively enhance the value of the enterprise to Chinese listing Corporations especially non-ferrous metal industry listing Corporations, and puts forward related suggestions.Firstly, the relevant literature in our country and abroad are studied and reviewed, laying the foundation for the theoretical and empirical analysis. The results of western scholars about the relationship between using derivatives and the value is not consistent, but overall using derivatives is conducive to enhancing the value of the enterprise. Chinese scholars for the research of derivatives started relatively late, and from the empirical results financial derivative products got the opposite of what one wanted. After that, the paper defines the theory and definition of risk management and enterprise value, laid the theoretical foundation of the thesis.Then, this paper analyzes the present situation of Chinese listing Corporation using financial derivatives. Although Chinese derivatives market in the number on the scale and variety has increased significantly, but the proportion of participating in the derivatives market listing Corporation is still very low. And they gathered in the financial industry. In the non-financial industry, companies in the non-ferrous metals industry are the main forces in the use of financial derivatives.The focal point of this paper is the empirical study part. This paper chooses 78 Chinese nonferrous metals industry listing Corporations and the number of samples is 216.This paper uses SPSS statistical software to do empirical research to analysis the effect on enterprise value by using derivatives in the nonferrous metal industry. Finally, according to the results of analysis and empirical study, the author puts forward suggestions in two aspects from improving the ability of risk management and the external environment of the use of derivatives.