Foreign Exchange Derivatives,foreign Currency Debt To Corporate Value Impact Study

The implementation of the floating exchange rate system and the promotion of the“One Belt,One Road” development strategy have led to an increase in the volatility and frequency of the RMB exchange rate,which has caused the RMB exchange rate risk to anstantly increase.Foreign exchange risk hedging plays an important role in reducing foreign exchange risk of multinational corporations,promoting trade development of multinational corporations,and improving the international competitiveness of multinational corporations.Foreign exchange derivatives and foreign currency debt are important tools for Chinese multinational companies to hedge foreign exchange risks.In view of the fact that current domestic and international research conclusions are different on the impact of foreign exchange derivatives and foreign currency debt use on corporate value,and that few studies have been done on the relationship between the two,Therefore,it is of great practical significance and theoretical value to study the impact of the use of foreign exchange derivatives and foreign currency debt on enterprise value.Based on the related theories of foreign exchange risk hedging and corporate value,this paper has firstly analyzed the current situation of foreign exchange derivatives and foreign currency debt use of multinational corporations in China;then it has constructed two sets of multiple regression models for the influence of foreign exchange derivatives and foreign currency debt use on corporate value of Chinese multinational corporations,finally,there is a empirical analysis of the value effect of foreign exchange derivatives and foreign currency debt use on corporate value,as well as the relationship between foreign exchange derivatives and foreign currency debt in hedging foreign exchange risk.The main research contents are as follows:(1)On the basis of the analysis of the research background,further clarify the significance of this study,clarify the content and methods of this study in order to plan the technical route of this paper,and find out the possible innovations of this paper;(2)On the basis of explaining the relevant theories of foreign exchange derivatives and foreign currency debt,clarify the relevant research on the impact of foreign exchange derivatives and foreign currency debt on enterprise value;(3)Combining with the current situation of foreign exchange derivatives and foreign currency debt market,and the relevant data of multinational corporations using foreign exchange derivatives and foreign currency debt,this paper makes a concrete analysis of the current situation of the use of foreign exchange derivatives and foreign currency debt of multinational corporations;(4)three research hypotheses are established according to theexisting relevant research and research needs.According to the need of research hypothesis,the relevant variables of sample company and model are selected and the corresponding demonstration model is constructed;(5)Using software Stata14 to empirically analyze the impact of 1299 sample listed multinational foreign exchange derivatives and foreign currency debt use on corporate value.The robustness test of the empirical model is carried out by replacing the relevant variables and controlling the industry;(6)summarize the above research and propose corresponding countermeasures.Through the above research,the following conclusions can be drawn:(1)the use of foreign exchange derivatives and foreign currency debt can reduce the risk of foreign exchange,bring value premium to the enterprise,and the effect of using both to hedge foreign exchange risk is better,and the premium brought to enterprises is higher;(2)for manufacturing multinational companies with high foreign exchange risk exposure,the use of foreign exchange derivatives and foreign currency debt to hedge foreign exchange risk has a higher value effect.This paper suggests that multinational corporations should hedge foreign exchange risk by using foreign exchange derivatives,foreign currency debt and other financial products according to their own characteristics of foreign exchange risk.