Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products
This study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies....
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/6618873 |
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| author | Cheng Chung Wu Menglin Yang Tiantong Yuan Qionghui Fu Ya Ju Tsai |
| author_facet | Cheng Chung Wu Menglin Yang Tiantong Yuan Qionghui Fu Ya Ju Tsai |
| author_sort | Cheng Chung Wu |
| collection | DOAJ |
| description | This study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies. It is found that even after the announcement of Taiwan’s No. 34 and No. 36 bulletins, there are still some problems that are needed to improve in the disclosure of derivative financial product investment information by Taiwan’s listed companies, at least in the disclosure of the reasons for this conduct which is still insufficient. In this study, two-stage regression analysis method is applied to empirical analysis, and it is found that hedging activities are related to corporate characteristics, such as expected financial crisis costs, corporate size, equity issues, growth investment opportunities, and information asymmetry. In the investment of derivative financial products, enterprises should evaluate their own financial characteristics as a reference for the risk avoidance decision. At the same time, it is necessary to investigate different natures of hedging tools used in appropriate risk categories, so as to fully achieve the hedging effect and maximize the hedging benefits. This study also found that companies with higher growth investment opportunities, larger size, and higher financial crisis costs will tend to use derivative financial products for hedging. As for the impact of other industries, it is found that the electronic and electrical machinery industries are more active than other industries in hedging behaviors of undertaking derivative financial products’ transaction. |
| format | Article |
| id | doaj-art-313047593bb44b7fa245ae9999922b09 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-313047593bb44b7fa245ae9999922b092025-02-03T06:43:57ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/66188736618873Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial ProductsCheng Chung Wu0Menglin Yang1Tiantong Yuan2Qionghui Fu3Ya Ju Tsai4Department of Business College, Jiaxing University Nanhu College, Jiaxing, Zhejiang, ChinaDepartment of Cultural Creativity, ChangSha Commerce and Tourism College, ChangSha, Hunan, ChinaDepartment of Business Administration International College, Krirk University, Bangkok, ThailandDepartment of Mathematics, Physics and Energy Engineering, Hunan Institute of Technology, Hengyang, Hunan, ChinaDepartment of Finance and Taxation, National Kaohsiung University of Science and Technology, Kaohsiung, TaiwanThis study is based on the situation of Taiwan listed companies as derivative financial products from 2015 to 2017, analyzing the relationship between the hedging of derivative financial products and characteristics of enterprises and the factors that affect the hedging decision-making of companies. It is found that even after the announcement of Taiwan’s No. 34 and No. 36 bulletins, there are still some problems that are needed to improve in the disclosure of derivative financial product investment information by Taiwan’s listed companies, at least in the disclosure of the reasons for this conduct which is still insufficient. In this study, two-stage regression analysis method is applied to empirical analysis, and it is found that hedging activities are related to corporate characteristics, such as expected financial crisis costs, corporate size, equity issues, growth investment opportunities, and information asymmetry. In the investment of derivative financial products, enterprises should evaluate their own financial characteristics as a reference for the risk avoidance decision. At the same time, it is necessary to investigate different natures of hedging tools used in appropriate risk categories, so as to fully achieve the hedging effect and maximize the hedging benefits. This study also found that companies with higher growth investment opportunities, larger size, and higher financial crisis costs will tend to use derivative financial products for hedging. As for the impact of other industries, it is found that the electronic and electrical machinery industries are more active than other industries in hedging behaviors of undertaking derivative financial products’ transaction.http://dx.doi.org/10.1155/2021/6618873 |
| spellingShingle | Cheng Chung Wu Menglin Yang Tiantong Yuan Qionghui Fu Ya Ju Tsai Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products Complexity |
| title | Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products |
| title_full | Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products |
| title_fullStr | Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products |
| title_full_unstemmed | Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products |
| title_short | Application of Big Data Complexity Analysis Hedging Operation of Derivative Financial Products |
| title_sort | application of big data complexity analysis hedging operation of derivative financial products |
| url | http://dx.doi.org/10.1155/2021/6618873 |
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