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Quipukamayoc
Print version ISSN 1560-9103On-line version ISSN 1609-8196
Abstract
DOMINGUEZ SOTO, Leenin Krenlin. Use of derivative financial instruments and profitability of non-financial companies of Lima’s Stock Exchange. Quipukamayoc [online]. 2022, vol.30, n.64, pp.23-31. Epub Dec 29, 2022. ISSN 1560-9103. http://dx.doi.org/10.15381/quipu.v30i64.22923.
Objective:
To establish the relation between the use of derivative financial instruments and the profitability of non-financial companies in Lima’s Stock Exchange (LSE).
Method:
The research was quantitative in nature with a non-experimental design and transversal of correlational type. By using information from 149 non-financial companies, the model of structural structures was applied in order to know the relation between the variables.
Results:
It is evident that the financial instruments derived from interest rate, exchange rate and price have a low positive relations with the profitability of the non-financial companies of the LSE.
Conclusion:
Although there is a positive relation between the use of derivative financial instruments and the profitability of non-financial companies on the LSE, it is not significant, which may be due to the small number of companies that used financial instruments.
Keywords : derivatives; hedging; profitability; structural equations; Stock Exchange.