Commodity Futures Trading And Enterprise Value In Nonferrous Metal Industry

Futures is an important risk management tool for enterprises.China’s non-ferrous metal commodity futures are constantly innovating and have the most complete type system,and more and more non-ferrous metal enterprises are participating in futures trading.Entity enterprises enter the futures market and take hedging trading strategies to hedge the price fluctuations of raw materials or finished products and reduce their operating risks.If speculative trading strategies are adopted,futures market enterprises will not only fail to avoid risks,but also exacerbate the volatility of corporate performance.Therefore,taking the nonferrous metal industry as a sample,the stu DY on the impact of the futures market trading behavior on the enterprise value of listed companies in China can assess the effect of the futures market serving the real economy,and also provide reference for enterprises to further improve risk management and business strategies.In this paper,the research object for the nonferrous metal industry listed companies,the manual from 2016 to 2019,from the enterprise’s annual report to collect relevant data,using the annual reports to disclose information to distinguish the commodity futures investment purposes,based on the Diebold and Yilmaz(2009,2012)put forward spillover index model(hereinafter referred to as DY overflow index model)is constructed overflow intensity index futures price of corporate shares,at the same time,according to the nature of the enterprise business,commodity futures investment positions and advocate business wu income index build enterprise "hedging" index futures trading,This index distinguishes the nature of futures trading of enterprises(more likely to be speculative trading or hedging trading),and explores the stabilizing effect of futures trading motivations on the value of enterprises by stu DYing the influence of hedging tendencies on the spillover index.By using Tobin’s Q value to measure enterprise value,this paper further analyzes the role of futures trading in promoting enterprise value.It is found that in the futures trading behavior of listed non-ferrous metal companies from 2016 to 2019,there are 80 samples of enterprises with hedging tendency,25 samples of enterprises with speculation tendency,and the trading behavior of other samples of enterprises has both tendencies.The futures trading with the hedging tendency of non-ferrous metal enterprises can reduce the spillover effect of futures market on the enterprise value and stabilize the enterprise value.The results show that futures trading with hedging tendency has a significant effect on the promotion of firm value.This stu DY means that it is necessary to strengthen the supervision on the information disclosure of the use of financial derivatives by real enterprises,and at the same time,further strengthen the awareness of enterprises to participate in the hedging of the futures market,so as to play the stabilizing role of commodity futures trading on the stock price of enterprises and the enhancing role of enterprise value.