Impact of Foreign Currency Derivatives on Firm Performance: Evidence on Shari’ah and non-Shari’ah Compliant Firms

Q3 Business, Management and Accounting

Jurnal Pengurusan Pub Date : 2022-06-01 DOI:10.17576/pengurusan-2022-64-02

Zaminor Zamzamir, Zatul Karamah, Ahmad Baharul Ulum, Anwar Hasan, Abdullah Othman

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引用次数: 1

Abstract

Hedging practices among Shari’ah compliant firms (ShC) are still not well explored and firms in Malaysia is very much lag behind in derivatives usage against firms in the developed countries. This study investigates the influence of financial derivatives usage on the value of Shari’ah and non-Shari’ah compliant firms (non-ShC) in Malaysia and compares the influence of derivatives usage on the value between the two categories of firms. To meet its objective, Generalized Method-of-Moment estimator (System-GMM) is employed on a set of panel data from 2000-2017. This study covers 200 firms engaged in derivatives which 59 firms are ShC firms and 141 are non-ShC firms. This study finds financial derivatives contribute positively to the value of Shari’ah compliant but negatively to the non-ShC firms. This study concludes that ShC performed better than its counterpart in risk management using derivatives. The findings enrich the current literature on the Islamic financial market and contribute to a better understanding relating to hedging activities. This study offers new evidence on risk management using derivatives in both Shari’ah and non-ShC firms and the importance of industrial diversification on firm value. This study suggests that the non-involvement in non-ShC firm’s activities contributes to the lower risk profile hence a more effective risk management of the Shari’ah compliant firms

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外汇衍生品对公司绩效的影响:对伊斯兰教法和非伊斯兰教法合规公司的证据

遵守伊斯兰教法的公司（ShC）的套期保值做法仍然没有得到很好的探索，马来西亚公司在针对发达国家公司的衍生品使用方面远远落后。本研究调查了金融衍生品的使用对马来西亚伊斯兰教法和非伊斯兰教法合规公司（非ShC）价值的影响，并比较了衍生品使用对这两类公司价值的影响。为了实现其目标，在2000-2017年的一组面板数据上采用了广义矩估计方法（System GMM）。这项研究涵盖了200家从事衍生品的公司，其中59家是ShC公司，141家是非ShC公司。本研究发现，金融衍生品对符合伊斯兰教法的公司价值有积极贡献，但对非伊斯兰教法公司有消极贡献。这项研究得出的结论是，ShC在使用衍生品进行风险管理方面的表现要好于同行。这些发现丰富了当前关于伊斯兰金融市场的文献，有助于更好地理解与对冲活动有关的内容。这项研究为Shari'ah和非ShC公司使用衍生品进行风险管理以及产业多元化对公司价值的重要性提供了新的证据。这项研究表明，不参与非ShC公司的活动有助于降低风险，从而对符合伊斯兰教法的公司进行更有效的风险管理

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Jurnal Pengurusan Business, Management and Accounting-Business and International Management

CiteScore

1.20

自引率

0.00%

发文量

期刊介绍： Jurnal Pengurusan (UKM Journal of Management) is published three times a year in June, September and December by UKM Press, Universiti Kebangsaan Malaysia. It publishes original works that advance knowledge of theory, practice and research across the business management discipline. It aims to provide Asian regional perspectives on management of benefit to scholars, educators, students, practitioners, policy-makers and consultants worldwide. The research covers organizational and individual level of analysis in the field of management, managerial accounting, finance and banking, marketing, entrepreneurship and other related areas. This journal accepts both empirical and conceptual research papers with relevant methodological approaches.