| The outbreak of the financial crisis triggered sharp fluctuations in commodity prices, the dollar continues to slide against the RMB, and it caused a wide range of RMB exchange rate, the company have faced some risks,such as the risk of finished goods and raw material price fluctuation and the risk of financial market exchange rate or interest rate.As a risk management tool,derivatives cause more attention. In 2013, the global derivatives market based on the future and option contracts have traded at 21.64 billion, the domestic futures market turnover also have reached 2.062 billion. But the 2008 financial crisis has made part of companies that improperly use the derivatives suffered losses. Air China, China COSCO, Shennan power and many other state-owned companies, local state-owned companiesor private companies those use derivatives as hedgingtools suffered huge losses, even thought make them bankrupcy.Therefore, the Hedging function ofthe futures, options, foreign exchange contracts, interest rate swaps and other derivatives has been questioned. Then we want to know whether the derivatives is an ideal tool of risk management, and whether the derivatives can reduce the risk of the companies at the group level,whether the use of derivatives for risk aversion is positive or negative impact.Under this background, this paper studied the influences of the derivatives to the companies’risk from theoretical and empirical aspects.At first,this paper describes the conception of financial derivatives,thenreviewed some literature of derivatives’investment motive and they risk aversion function. On this basis, through collecting the date from listed companies in Shanghai and Shenzhen from 2007 to 2013, we find that the market of our financial derivatives still has some problems. For example, the history of listed companies using financial derivatives for hedging is shorter than others; a few of listed companies are participate in derivatives market, mainly are in nonferrous materials, furniture, paper-making, printing and electronic industry.; the variety of used derivatives is limited; the reveal of derivative usage is less of standardization.By doing empirical test,we analyzedthe hedging effect between different type of derivatives and companies, the result shows that derivativesInvestment in Chinese can reduce the risk levelof the companies,futuresclassand foreign exchange derivatives are better than the others on risk management, Use of derivatives can increase the risk of the listed company level which has group control background. Finally, the paper put forward some from suggestions with the view of government’s supervision, market construction and enterprise itself. |
