| Abstract [eng] |
The aim of this study is to determine the impact of the use of derivative financial instruments on the value and risk of joint-stock companies in the Baltic countries. The work consists of four parts: analysis of theoretical aspects, research methodology, research and interpretation of results, conclusions and recommendations. The analysis of theoretical aspects defines the concept of derivative financial instruments, identifies the areas in which they are used, and determines the impact these financial instruments may have on a company's performance. Based on this analysis, it was found that derivative financial instruments can help companies hedge against risk and increase their value. The methodology section presents the research variables, research method, data verification methods, hypotheses, and, based on the analysis of theoretical aspects, justifications for each selected research detail. The following variables are used in this study: return on assets, Tobin's Q ratio, debt-to-asset ratio, stock return volatility, use of derivative financial instruments, company size, financial leverage, growth rate, and liquidity. A multiple linear regression model is used to conduct the study. The study includes an analysis of variable data graphs, descriptive statistics, and verification tests, such as multicollinearity, stationarity, autocorrelation and homoscedasticity, results and their explanation which were performed to verify whether the selected data is suitable for this study. Finally, the results of multiple linear regressions and their interpretations are presented. This study found that derivative financial instruments have a negative impact on the risk of small Baltic joint-stock companies with high debt levels and may further increase it. For small, fast-growing companies and large companies with high debt levels, the use of derivative financial instruments can help reduce their risk level and increase their value. The conclusions and recommendations section provides a structured interpretation of the results and direct recommendations to Baltic joint-stock companies with high financial leverage or those that are growing rapidly, explaining the conditions under which it is advisable to use these financial instruments and those under which it is advisable to refrain from doing so. |
