Derivatives usage by non-financial companies in Malaysia / Roseamilda Mansor, Khalijah Ramli and Marina Ibrahim

Mansor, Roseamilda and Ramli, Khalijah and Ibrahim, Marina (2012) Derivatives usage by non-financial companies in Malaysia / Roseamilda Mansor, Khalijah Ramli and Marina Ibrahim. In: 1st International Conference on Innovation and Technology for Sustainable Built Environment 2012 (ICITSBE 2012), 16-17 April 2012, Universiti Teknologi MARA Cawangan Perak.

Abstract

The purpose of this research is to examine Malaysian non-financial firms’ use of derivatives. In addition, this study contributes to the increased knowledge about a firm’s derivatives practices and the impact from factors such as the firm size, category of industry and nationality using these practices. This research has two objectives which are to examine the extent of the derivatives usage in non-financial companies in Malaysia and to determine the key determinant of derivatives usage in non-financial companies in Malaysia. This research involved 286 respondents from non-financial companies, through the use of e-mails. The results of this study show that firms who claimed they are not using derivatives due to their insignificant exposures. It is also found that companies are reluctant to use derivatives due to the disclosures of derivatives activities required under Securities Commission (SC) rules. The study concludes that, the lack of knowledge on derivatives is the major reason for firms not to go against the use of derivatives. This is followed by the inadequate exposure about derivatives.

Metadata

Item Type: Conference or Workshop Item (Paper)
Creators:
Creators
Email / ID Num.
Mansor, Roseamilda
rosea303@perak.uitm.edu.my
Ramli, Khalijah
UNSPECIFIED
Ibrahim, Marina
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > General works. Financial institutions
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Capital budget. Capital investments. Fixed capital
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Working capital
Divisions: Universiti Teknologi MARA, Perak > Seri Iskandar Campus
Event Title: 1st International Conference on Innovation and Technology for Sustainable Built Environment 2012 (ICITSBE 2012)
Event Dates: 16-17 April 2012
Page Range: pp. 791-800
Keywords: Derivatives, equity derivatives, risk management, underlying instrument and financial stability
Date: 2012
URI: https://ir.uitm.edu.my/id/eprint/43210
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