Foreign currency and interest rate derivatives on firm value: evidence on Shari’ah compliant firms

Zamzamir@Zamzamin, zaminor and Haron, Razali (2020) Foreign currency and interest rate derivatives on firm value: evidence on Shari’ah compliant firms. In: 22nd Malaysian Finance Association Conference 2020 (MFAC 2020), 17th-19th November 2020, Shah Alam, Selangor. (Unpublished)

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Abstract

This study examines the impact of foreign currency and interest rate derivatives on the firm value of Shari’ah compliant firms in Malaysia. To meet its objective, Generalized Method-of-Moment estimator (System-GMM) and Two Stage Least Square (2SLS) approaches are employed for a set of panel data from 2000-2017 for examining the impact of both foreign currency and interest rate derivatives. This study concludes that there is a significant relationship between foreign currency derivatives on firm value. However, the relationship between interest rate derivatives and firm value is insignificant. The findings enrich the current Islamic financial market literature and contribute to a better understanding of the hedging activities. This study offers new evidence on risk management using derivatives in both foreign currency and interest rate derivatives.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	4581/84926 Presentation via online
Uncontrolled Keywords:	Risk management, foreign currency derivatives, interest rate derivatives, hedging, firm value, Shari’ah compliant firms
Subjects:	H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HG Finance > HG3810 Foreign exchange
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Razali Haron
Date Deposited:	20 Nov 2020 11:06
Last Modified:	20 Nov 2020 12:55
URI:	http://irep.iium.edu.my/id/eprint/84926

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