| With the continuous expansion of the scale of foreign investment of Chinese enterprises,derivatives are also used by more and more enterprises to hedge risks.The impact of financial derivatives on listed enterprises is manifested in two aspects: on the one hand,financial derivatives have the function of hedging,financial derivatives can help enterprises hedge the risks they face,to a certain extent reduce the possibility of potential losses,so as to improve the situation of enterprises and improve efficiency.On the other hand,derivatives are a kind of highly leveraged trading,and enterprises can obtain high returns through speculation or arbitrage,so as to increase the value level of enterprises;However,if the actual direction of the market is opposite to the direction of speculation,the company will face huge losses,which will bring huge risks to the normal operation of the enterprise.Therefore,studying the impact of financial derivatives on listed enterprises is of great significance to the reasonable use of derivatives by listed enterprises for hedging.The existing research mainly focuses on the impact of derivatives hedging on firm performance,and pays less attention to the impact of derivatives hedging on corporate value and corporate commitment.In addition,executives are the decision-makers of enterprises using derivatives to hedge,and executive incentive policies may affect the role of corporate derivatives hedging in corporate management.In order to promote the more efficient use of derivatives for hedging,it is necessary to clarify the impact of derivatives hedging on enterprise value and corporate risk-taking levels,as well as the potential impact of executive incentives,so as to provide reference for enterprises and governments.In order to solve the above problems,this paper studies the relationship between the use of derivatives hedging by enterprises and the value of enterprises and the level of corporate risk taking from the perspective of executive incentives.Firstly,based on the theory of financial distress,risk management theory and tax cost,this paper analyzes the impact of derivatives hedging on enterprise value and enterprise risk-taking level,demonstrates the moderating effect of executive incentive policies including executive compensation incentive and executive equity incentive,and discusses the impact of enterprise nature and corporate governance on the relationship between derivatives hedging and enterprise value and enterprise risk-taking level.Secondly,this article introduces the Chinese derivatives market,analyzes the use of derivatives hedging instruments by listed Chinese companies,and the reasons why Chinese companies use derivatives to hedge.Subsequently,an empirical study was carried out in this paper.Taking the data of domestic listed companies from 2009 to 2021 as a research sample,the annual report of enterprises is used to search for forwards,futures,derivatives and other keywords to obtain data on the use of derivatives by enterprises.The Tobin Q ratio and corporate earnings volatility were used to measure the enterprise value and enterprise risk exposure level,and the panel data regression model was used to study the relationship between derivative hedging and enterprise value and risk exposure level.This paper takes executive compensation incentive and equity incentive as regulating variables respectively,and studies whether they can regulate the relationship between derivative hedging and enterprise value and corporate risk-taking level.Heterogeneity analysis was carried out based on property rights attributes and corporate governance status,and robustness tests such as variable substitution and endogenous tests were carried out.The study finds that,first,the use of derivatives hedging by enterprises can enhance the value of enterprises and the level of corporate risk-taking,and the results are still true when controlling for other variables of enterprises.Second,both executive compensation incentives and equity incentives can enhance the effect of derivatives hedging on enterprise value and corporate risk taking.Third,compared with state-owned enterprises,the use of derivatives hedging by non-state-owned enterprises has a more significant effect on improving enterprise value and corporate risk taking.Compared with enterprises with poor corporate governance,the use of derivatives hedging by enterprises with good corporate governance has a more significant effect on improving corporate value and corporate risk-taking. |
