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The impact of corporate hedging on stock price performance
Dissertation (MBA)--University of Pretoria, 2010.
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| Format: | Thesis |
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University of Pretoria
2013
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| _version_ | 1867613615620620288 |
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| access_status_str | Open Access |
| author2 | Saville, Adrian |
| author_browse | Saville, Adrian |
| author_facet | Saville, Adrian |
| collection | Thesis |
| dc_rights_str_mv | © 2006 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria |
| description | Dissertation (MBA)--University of Pretoria, 2010. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/23691 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:38:57.791Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/23691 The impact of corporate hedging on stock price performance Saville, Adrian upetd@up.ac.za Towle, NIcholas Richard UCTD Hedge funds Dissertation (MBA)--University of Pretoria, 2010. <p.This study explores the extent and benefit of corporate hedging in South Africa by examining the disclosure of financial derivative instruments in the annual reports of non-financial companies listed on the JSE. The conflicting academic theory on hedging and the shortage of empirical evidence to support corporate hedging provide decision-makers, especially in South Africa, with poor information on the impact of hedging on the market value of their companies and, therefore, the total return provided to their shareholders. A database of derivative usage was constructed from the annual reports of all non-financial JSE-listed companies. The data was used to quantify the extent of derivative usage in South African and to construct the portfolios necessary to calculate the risk factors for the regression model. The Fama and French four-factor model was used as the basis for the regression analysis necessary to show whether or not hedging has a positive impact on annual stock price performance. The results show that hedging is prevalent in South Africa. However, the results provide evidence that corporate hedging through the use of derivative instruments is only a value-adding strategy for firms that exclusively use currency derivatives. The use of commodity or interest rate derivatives is not a value-adding strategy, nor is the use of currency derivatives in conjunction with commodity or interest rate derivatives. Gordon Institute of Business Science (GIBS) unrestricted 2013-09-06T15:44:30Z 2010-07-02 2013-09-06T15:44:30Z 2007-04-07 2010-07-02 2010-04-01 Dissertation Towle, NR 2006, The impact of corporate hedging on stock price performance, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/23691 > G10/276/ag http://hdl.handle.net/2263/23691 http://upetd.up.ac.za/thesis/available/etd-04012010-125509/ © 2006 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria application/pdf University of Pretoria |
| spellingShingle | UCTD Hedge funds The impact of corporate hedging on stock price performance |
| title | The impact of corporate hedging on stock price performance |
| title_full | The impact of corporate hedging on stock price performance |
| title_fullStr | The impact of corporate hedging on stock price performance |
| title_full_unstemmed | The impact of corporate hedging on stock price performance |
| title_short | The impact of corporate hedging on stock price performance |
| title_sort | impact of corporate hedging on stock price performance |
| topic | UCTD Hedge funds |
| url | http://hdl.handle.net/2263/23691 http://upetd.up.ac.za/thesis/available/etd-04012010-125509/ |