An Empirical Study On The Impact Of Hedging On Corporate Value

Compared with Western developed countries,China's financial derivatives market has not matured enough,and market players have insufficient practical experience.Many companies cause significant losses because they cannot use derivatives properly.Then,does the use of derivative financial instruments effectively reduce corporate risks and increase corporate value,or will it intensify the operational risk of the company and damage the value of the enterprise? In July 2014,the IASB issued IFRS 9 to expand the scope of application of hedge accounting,simplify the processing of hedging accounting,strengthen risk management and information disclosure of hedge accounting;in view of practical needs and continuing commitment to international financial reporting standards,China's financial The Department also issued new revised hedge accounting standards in March 2017.In this context,the article has important theoretical and practical significance by exploring the sources of the influence of hedging on company value.On the basis of reviewing predecessors' research,this article defines concepts such as corporate risk,hedging,corporate value,and institutional investors.The effect of value and the effect of institutional investors on shareholding adjustments have provided theoretical assumptions.Based on the data of listed companies in China's A-share main board from 2009 to 2015,the paper uses the three-step principle of Wen Zhonglin's classic achievement — intermediary variable test.A regression model was established and the variables were centralized and verified.The results showed that the use of hedging of derivative financial instruments was to increase the value of the enterprise by reducing the risk of the enterprise;in the company,the institutional investors held shares to the enterprise.The relationship between risk and corporate value is a negative regulatory role.Therefore,companies should classify and systematically manage derivative financial instruments,establish sound hedging internal controls,improve the disclosure requirements for hedge accounting,actively participate in the formulation of hedging accounting standards,and comply with hedging accounting standards to promote the use of hedging Derivatives circumvent corporate risks and increase corporate value.