The Effect of Derivative use on Stock Price Volatility Based on Empirical Research of Listed Companies in China
In theory,the use of derivatives to hedge against the risk of exchange rate,commodity prices and other price fluctuations in business is conducive to the sustainable and stable operation of the company,so as to achieve the stability of stock prices.However,the improper use of derivatives also poses additional risks,affecting the company's operations and leading to increased volatility in stock prices.Along with the development of Chinese derivatives market and the implementation of regulations,more and more listed companies start to use derivatives for hedging.Taking A-share listed companies as samples,this paper studies the influence of derivatives use on stock price volatility by using two-way fixed effect model.The results show that the use of derivatives by listed companies can significantly reduce stock price volatility,mainly by reducing idiosyncrasies volatility.
NETL
NSTL
万方数据
