The Research On Application Of Financial Derivative Tools In Corporate Management

After joined WTO, more and more Chinese enterprises begin to enter world market. How to use financial derivative tools to avoid risk, hedging arbitrage has become the issue which must face.This thesis analyzed basic concepts, characteristics and the risks of financial derivative instruments and combined with the application case analysis, and discussed an enterprise how to make effective use financial derivative instruments to hedge, speculate and arbitrage, reduce taxes and the cost. Though the analysis and case study, thesis made some proposes and suggestions for the use of financial derivative tools in corporate finance and improving enterprise’s financial benefits and value.Chapter one is the introduction, mainly introduces the purpose, background and meaning of the paper. Chapter two mainly introduces the concept and classification and the characteristic and basic theory of derivative financial instruments which focuses on the exchange rate derivatives and interest rate derivatives and international financial derivatives market and scale and structure. Chapter three analyzed China’s financial derivatives market development and current situation of the use of financial derivative instruments of Chinese enterprises. Chapter four is the enterprise practical application case analysis of derivative financial tools, mainly on main functions and operating method and practical application combined with case analysis. Chapter five mainly analyzed is the risk of financial derivatives instruments and characteristics and causes of risk, the last chapter also put forward corresponding strategies.To make effective use of financial derivative instruments, enterprise must have basic principle and an explicit goal. and strictly abide with the laws and regulations during exchange. Strict internal control system also need to be established. Financial derivative instruments, although complex and risky, but so long as enterprise can use it reasonably and scientifically, the risks can be under controlled.