An Empirical Case Study of Foreign Asset & Derivatives Leverage Effect on the Shipbuilding Firms

• 영문명: An Empirical Case Study of Foreign Asset & Derivatives Leverage Effect on the Shipbuilding Firms
• 발행기관: 한국무역연구원
• 저자명: Dong-Gyun Kim
• 간행물 정보: 『무역연구』제18권 제6호, 155~173쪽, 전체 19쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2022.12.31

영문 초록

Purpose – This study aims to analyze the foreign asset leverage effect on Korean shipbuilding companies’ foreign profitability and maintain the appropriate foreign asset size for reducing exchange risk. Design/Methodology/Approach – As a research method, a simple average difference comparison method was used to estimate and compare the difference from the total average value for each variable. Our paper proceeds in presenting serial-stage analysis considering exchange risk factors through estimation on transformation of foreign transactions & derivatives including annual trends of foreign asset and industrial characteristics. Findings – The value of the foreign asset leverage effect on shipbuilding companies was -36.4, and the result was more negative than other industries. This is because ship manufacturing companies focus more than 85% of their sales on overseas transactions and have large amounts of transaction units. Especially, the proportion of the gains from the derivatives book valuation process accounts for 109.8% of the net foreign profits. Research Implications – We need to introduce an independent credit rating system for foreign currency accounts which reflect the relating stability of the foreign currency denominated transaction on global business companies. From a long-term perspective, the exchange risk management of global companies requires relationships and mutual understanding with stakeholders in addition to financial hedging tools.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Analysis Framework and Estimation Method

Ⅳ. Data Outsourcing and Estimation Methodology

Ⅴ. Estimation Results

Ⅵ. Implications & Conclusion

References

키워드

Exchange Rate Risk Foreign Currency Translation Profit. Derivatives Book Valuation Net Foreign Asset & Derivatives Leverage Effect