The dynamic effect of corporate financial hedging on firm value: The case of Indian MNCs Jyoti Prakash Das, Shailendra Kumar Borsa Istanbul Review, 2023 This paper explores the effect of financial instruments for exchange rate hedging on a firm's value in the presence of non-operating profit or loss from foreign exchange transactions. This study uses Tobin's Q ratio as a proxy for firm value and a two-step generalized method of moments (GMM) model to estimate the effect of financial hedging. Our dynamic panel analysis using extensive data on 61 Indian multinational corporations (MNCs) in 2009–2020 shows that financial hedging instruments, such as foreign currency derivatives (FCD) and foreign currency–denominated debt (FDD), enhance firm value by 16.91% and 10.21%, respectively. The results of the robustness test confirm the findings.
RECENT SCHOLAR PUBLICATIONS
Corporate Hedging Practice and Risk Management - Empirical Evidence from Multinational Corporations JP DAS, S KUMAR Quarterly Journal of Finance and Accounting 62 (1/2), 1-50 , 2024 2024
Impact of corporate hedging practices on firm's value: An empirical evidence from Indian MNCs: JP Das, S. Kumar JP Das, S Kumar Risk Management 25 (2), 10 , 2023 2023 Citations: 5
The dynamic effect of corporate financial hedging on firm value: The case of Indian MNCs JP Das, S Kumar Borsa Istanbul Review 23 (3), 696-708 , 2023 2023 Citations: 40
Business Renovation through Merger: Empirical Evidence from Indian Banking Sector JP Das 11 th National Seminar on FINANCIAL MODELING - A STRATEGIC TOOL FOR … , 2012 2012
Financial Risk Management: A Challenge for the Competitive Environment JP Das TRANSFORMATION AND SURVIVAL OF BUSINESS ORGANIZATIONS 1, 149-166 , 2011 2011
Price and Liquidity Effects of Stock Split: Empirical Evidence from Indian Stock Market JP Das Tirpude's National Journal of Busiess Research (TNJBR) 1 (1), 13-21 , 2011 2011
Value Based Management: An Indian Prospective JP Das Srusti Management Review 4 (II), 61-68 , 2011 2011
MOST CITED SCHOLAR PUBLICATIONS
The dynamic effect of corporate financial hedging on firm value: The case of Indian MNCs JP Das, S Kumar Borsa Istanbul Review 23 (3), 696-708 , 2023 2023 Citations: 40
Impact of corporate hedging practices on firm's value: An empirical evidence from Indian MNCs: JP Das, S. Kumar JP Das, S Kumar Risk Management 25 (2), 10 , 2023 2023 Citations: 5
Corporate Hedging Practice and Risk Management - Empirical Evidence from Multinational Corporations JP DAS, S KUMAR Quarterly Journal of Finance and Accounting 62 (1/2), 1-50 , 2024 2024
Business Renovation through Merger: Empirical Evidence from Indian Banking Sector JP Das 11 th National Seminar on FINANCIAL MODELING - A STRATEGIC TOOL FOR … , 2012 2012
Financial Risk Management: A Challenge for the Competitive Environment JP Das TRANSFORMATION AND SURVIVAL OF BUSINESS ORGANIZATIONS 1, 149-166 , 2011 2011
Price and Liquidity Effects of Stock Split: Empirical Evidence from Indian Stock Market JP Das Tirpude's National Journal of Busiess Research (TNJBR) 1 (1), 13-21 , 2011 2011
Value Based Management: An Indian Prospective JP Das Srusti Management Review 4 (II), 61-68 , 2011 2011