A carregar...
Publicação
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 1006.01 KB | Adobe PDF |
Orientador(es)
Resumo(s)
This thesis examines the use of foreign currency and fuel derivatives by a sample of 26
passenger airlines, between 2000 and 2016. The main goal is to study the impact on Tobin’s
Q. Based on previous literature, I investigate if there is a premium associated with using these
derivatives, controlling for other variables that might affect Q. The results are not statistically
significant but point to a positive premium associated with the use of currency derivatives and
a discount for the use of fuel derivatives. These results are consistent with an alternative
approach, using ROA, stock returns and revenue growth sensitivity to fuel and currency prices.
I also study the likeliness of a firm hedging these risks based on its fundamentals. A negative
correlation between jet fuel prices and the price of the US dollar relative to a representative
basket of currencies indicates the possible presence of a natural hedge, meaning that losses
from high prices in one of the factors may be offset by gains in the other.
Descrição
Palavras-chave
Derivatives Airlines Tobin´s q Hedging Jet fuel Foreign currency