Research On The Impact Of Foreign Exchange Derivatives Trading On The Value Of Listed Companies

With the deepening of the global economic and financial integration process,the acceleration of China's exchange rate marketization process and the improvement of the degree of economic opening up,listed companies' exposure to commodity and raw material prices and exchange rate risks in international trade is increasing.Risk management has become a major event for companies,and some listed companies have begun to use foreign exchange derivatives for risk hedging.However,due to the involvement of China National Aviation Oil in the trading of crude oil derivatives in 2002,the company lost 554 million US dollars,and CITIC Pacific's CITIC Pacific's risky events such as the huge losses caused by the improper use of derivatives transactions in 2008 caused many companies to There are doubts about using foreign exchange derivatives to circumvent foreign exchange risk.At the same time,domestic scholars have different research conclusions on the impact of foreign exchange derivatives on corporate value,further increasing people's doubts about foreign exchange derivatives,making the use of foreign exchange derivatives by listed companies gradually reduced,and the losses caused by foreign exchange risks of enterprises are increasing.At the same time,it hindered the development of the foreign exchange derivatives market.Therefore,whether the impact of foreign exchange derivatives on corporate value is positive or negative,and the channels through which foreign exchange derivatives affect corporate value is a question worth exploring.In view of this,this paper focuses on the channels of the impact of foreign exchange derivatives on corporate value,and the impact on corporate value.Firstly,it analyzes the transmission channel and value impact of foreign exchange derivatives on corporate value from the theoretical level,and then verifies the foreign exchange derivatives from the empirical level.The relationship between transactions and corporate value and the correctness of the transmission channels.On the one hand,this paper sorts out the relevant literature on the impact of derivatives trading on corporate value,and clarifies the relationship between the transmission channel of foreign exchange derivatives trading and corporate value from the theoretical level,and draws on the relationship between Smith and Stulz(1985).The state selection model constructs a new model to conduct a derivation test of the conduction channel.On the other hand,on the empirical level,with reference to the models of Allayannis and Weston(2001)and the research on the factors affecting the value of enterprises,a two-stage model and a multi-regression model were constructed,taking China's domestic A-share listed companies in 2013-2017 as a sample,An empirical test is conducted on the relationship between the transmission channels of foreign exchange derivatives and the value of enterprises.The study found that companies using foreign exchange derivatives to hedge risk risk management can enhance the value of the company through taxation effects,reducing financial distress costs and under-investment costs.Moreover,the degree of use of foreign exchange derivatives is significantly positively correlated with corporate value.Finally,the conclusions of this paper are summarized and relevant policy recommendations are put forward.