The Effect of Derivatives Usage on Firm Value and Performance
The Effect of Derivatives Usage on Firm Value and Performance:
The Study on Malaysian Publicly Listed Firms Between 2008 and 2012
An undergraduate thesis proposal
Presented to the Accountancy Department
De La Salle University
2401 Taft Avenue, Manila, Philippines
in partial completion of the course requirements of
Bachelor of Science in Accountancy
Camposagrado, Raphael Luis C. de Vera, Jan Neil P.
Garcia, Carlos Oliver G.
De La Salle University
August 2013
Table of Contents
CHAPTER 1 - THE RESEARCH PROBLEM 7 1.1 Background of the Study 7 1.2 Statement of the Problem 9 1.3 Objectives of the Study 9 1.4 Conceptual/Theoretical Framework 10 1.4.1 Rational Expectations Theory 1.4.2 Dual Theory of Choice Under Risk 1.4.3 Resource-based Theory of Competitive Advantage 1.5 Operational Framework 12 1.5.1 Independent Variables 1.5.2 Dependent Variables 1.6 Assumptions of the Study 13 1.6.1 Reliability of Financial Statements 1.6.2 Relevant Period 1.7 Research Hypotheses 14 1.7.1 Absolute Amounts 1.7.2 Derivatives Ratios 1.7.3 Qualitative Properties 1.8 A Priori Expectations 18 1.9 Significance of the Study 20 1.9.1 Financial Institutions
1.9.2 Investors 1.9.3 Regulators and Policy-Makers 1.9.4 Academe 1.10 Scope and Limitations 22 1.10.1 Malaysia as the Benchmark 1.10.2 Function of the Benchmark 1.11 Definition of Terms 25
CHAPTER 2 - REVIEW OF RELATED LITERATURE 30 2.1 Nature of Derivatives Usage 31 2.1.1 Nature of Derivatives 2.1.2 Nature of Derivatives Usage in Malaysia 2.1.3 Nature of Derivatives Usage in the Philippines 2.2 Determinants for Using Derivatives 33 2.2.1 Financial Risk Management 2.2.2 Speculative Purposes 2.2.3 Leverage Purposes 2.2.4 Industry-specific factors 2.3 Cost-Benefit Analysis of Using Derivatives
The Study on Malaysian Publicly Listed Firms Between 2008 and 2012
An undergraduate thesis proposal
Presented to the Accountancy Department
De La Salle University
2401 Taft Avenue, Manila, Philippines
in partial completion of the course requirements of
Bachelor of Science in Accountancy
Camposagrado, Raphael Luis C. de Vera, Jan Neil P.
Garcia, Carlos Oliver G.
De La Salle University
August 2013
Table of Contents
CHAPTER 1 - THE RESEARCH PROBLEM 7 1.1 Background of the Study 7 1.2 Statement of the Problem 9 1.3 Objectives of the Study 9 1.4 Conceptual/Theoretical Framework 10 1.4.1 Rational Expectations Theory 1.4.2 Dual Theory of Choice Under Risk 1.4.3 Resource-based Theory of Competitive Advantage 1.5 Operational Framework 12 1.5.1 Independent Variables 1.5.2 Dependent Variables 1.6 Assumptions of the Study 13 1.6.1 Reliability of Financial Statements 1.6.2 Relevant Period 1.7 Research Hypotheses 14 1.7.1 Absolute Amounts 1.7.2 Derivatives Ratios 1.7.3 Qualitative Properties 1.8 A Priori Expectations 18 1.9 Significance of the Study 20 1.9.1 Financial Institutions
1.9.2 Investors 1.9.3 Regulators and Policy-Makers 1.9.4 Academe 1.10 Scope and Limitations 22 1.10.1 Malaysia as the Benchmark 1.10.2 Function of the Benchmark 1.11 Definition of Terms 25
CHAPTER 2 - REVIEW OF RELATED LITERATURE 30 2.1 Nature of Derivatives Usage 31 2.1.1 Nature of Derivatives 2.1.2 Nature of Derivatives Usage in Malaysia 2.1.3 Nature of Derivatives Usage in the Philippines 2.2 Determinants for Using Derivatives 33 2.2.1 Financial Risk Management 2.2.2 Speculative Purposes 2.2.3 Leverage Purposes 2.2.4 Industry-specific factors 2.3 Cost-Benefit Analysis of Using Derivatives
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