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dc.contributor.advisorBoyle, Glenn
dc.contributor.advisorBeighley, Scott
dc.contributor.authorReynolds, Murrayen_NZ
dc.date.available2011-04-07T03:12:27Z
dc.date.copyright2003-03-27en_NZ
dc.identifier.citationReynolds, M. (2003, March 27). What motivates New Zealand firms to use derivative instruments and does their use add value? (Thesis, Master of Commerce). Retrieved from http://hdl.handle.net/10523/1268en
dc.identifier.urihttp://hdl.handle.net/10523/1268
dc.description.abstractMany firms use derivative instruments as part of their strategic financial management. This study examines the motivations behind New Zealand firms' use of derivative instruments. Using the fair value and contract value amounts it finds that derivatives use increases with the firm size and with the proportion of debt a firm uses. These results are, however, sensitive to the classification of derivative use. Using an alternative classification of derivative use and a binary variable, the results indicate that the likelihood of derivative use increases with the size of the firm and the proportion of debt in a firm's capital structure. There is also mixed evidence to support the idea that derivative use increases with a firm's investment opportunity set. In investigating further the relationship between derivative use and investment this study finds that firms may use derivatives to mitigate the under-investment problem caused by costly external financing. Finally, there is no evidence that derivative use affects the value of a firm as there is no difference between the value of firms that use derivatives and the value of firms that do not.en_NZ
dc.subjectderivative instrumentsen_NZ
dc.subjectstrategic financial managementen_NZ
dc.subjectNew Zealand firmsen_NZ
dc.subjectfair valueen_NZ
dc.subjectcontract valueen_NZ
dc.subjectfirm's capital structureen_NZ
dc.subjectInvestment Opportunity Seten_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHG Financeen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleWhat motivates New Zealand firms to use derivative instruments and does their use add value?en_NZ
dc.typeThesisen_NZ
dc.description.versionUnpublisheden_NZ
otago.date.accession2007-03-29en_NZ
otago.schoolFinanceen_NZ
thesis.degree.disciplineFinanceen_NZ
thesis.degree.nameMaster of Commerce
thesis.degree.grantorUniversity of Otagoen_NZ
thesis.degree.levelMasters Thesesen_NZ
otago.interloanyesen_NZ
otago.openaccessAbstract Only
dc.identifier.eprints571en_NZ
otago.school.eprintsFinance & Quantitative Analysisen_NZ
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