| Diversification strategy and commodity future trading are two critical means for corporate risk management while diversification strategy could diminish operational risk yet lower efficiency at the same time.This essay established a database of 2005 to 2014 commodity future trading information of Chinese listed companies and empirically studied the impact of commodity future trading on specialized and diversified firms so as to assist risk control for companies and estimation of corporate value for the investors.The conclusions are listed as follow:(1)Comparing with diversified firms,specialized firms turn out to be with higher operational efficiency as well as operational risk.(2)Commodity future trading tends to diminish operational risk yet lower efficiency at the same time.(3)Concerning operational efficiency,diversified firms involved in commodity future trading enjoy the lowest rank followed by those not involved in commodity future trading while specialized firms yet not commodity future trading players rank top.(4)Adjusted volatilities of ROA showed that risk of diversified firms involved in commodity future trading is lower than that of specialized firms. |
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