Factors Affecting Firm s Foreign Exchange Risk Hedging...

Factors Affecting Firm’s Foreign Exchange Risk Hedging Policy Abstract Mostly foreign currency derivatives are used for hedging foreign exchange rate risk caused by exchange rate adverse fluctuation. This study is aimed to determine different factors that affect the foreign currency derivatives usage. Secondary data of 112 non financial firms, taken from their annual reports and balance sheet analysis issued by State Bank of Pakistan, is used for analysis for the period 2008 to 2013. Mann Whitney U test was used to check differences in characteristics of foreign currency derivatives users and non-users. Results show that users of the foreign currency were categorized as to be those firms having higher liquidity, lower growth options, larger in size, lower leverage, higher managerial ownership, lower profitability and higher foreign exposure as compared to the non users of foreign currency derivatives. Logit regression model was used to investigate different factors affecting firm’s derivatives usage for hedging its foreign exchange risk. Results of the logit model illustrate that there is significantly positive relationship between firm size, liquidity, foreign exposure and managerial ownership. The results also show that corporations with higher liquidity, larger size, and larger managerial ownership are more likely to use foreign currency derivatives usage for hedging. Further results illustrate negative significant relationship between growth opportunities, leverageShow MoreRelatedForeign Exchange Exposure And Toyota2063 Words   |  9 PagesGERALD FERNANDO LAUAN 2013059085 VICTORIA 2013059087 Foreign Exchange Exposure and Toyota Globalization has allowed the integration of national economies into the international market, giving easier access to information, goods and services through trade around the world. 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PAPAIOANNOU, Ph.D. International Monetary Fund Abstract Measuring and managing exchange rate risk exposure is important for reducing a ï ¬ rm’s vulnerabilities from major exchange rate movements, which could adversely aï ¬â‚¬ect proï ¬ t margins and the value of assets. This paper reviews the traditional types of exchange rate risk faced by ï ¬ rms, namely transaction, translation and economic risks, presentsRead MoreResearch on Foreign Exchange Risk Management13065 Words   |  53 PagesResearch Paper On Foreign Exchange Risk Management Submitted In Partial Fulfillment Of the Requirement Of Masters of Business Administration Table of Contents EXECUTIVE SUMMARY 1 CHAPTER 1: PLANRead MoreForeign Exchange Risk Management14141 Words   |  57 PagesREVIEW 1 The survey of foreign currency risk awareness and management practices in Tanzania REVIEW OF LITERATURE Foreign exchange risk management Foreign currency exchange risk is the additional riskiness or varience of a firm’s cash flows that may be attributed to currency fluctuations (Giddy, 1977, Brigham and Ehrhardt, 2005). Normally, foreign currency risk exists in three forms; translation, transaction and economic exposures. Foreign currency risk management involves taking decisionsRead MoreHedging Currency Exposures in a Multinational Corporation26743 Words   |  107 PagesMASTER’S THESIS Financial theory offers several rationales for financial risk management. Hedging enables firms to maintain their access to internal funds as well as reduces the costs of financial distress. The theoretical framework offers, however, few tools for currency risk identification and for choosing a proper hedging instrument. This Thesis seeks to help firms manage risks better by defining the currency risk exposures of a multinational corporation, by describing their effects on theRead MoreExecutive Summary : Austral Pvt. Ltd Contracts With Import And Export Industry2528 Words   |  11 Pagesproduct in various part of globe. Dairy, fish, meat and seafood product are the product they trade with. The firm would have the greatest competitor risk in import and export business is the duplication and quality of goods. 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The government has already implemented the availability of obtaining environmental clearances online, which would be invaluable to an energy firm (Kaur, J. 2016). ï  ¶ FDI: Out of the 25 sectors that the governmentRead MoreRunning Your Own Mnc4433 Words   |  18 PagesContents EXECUTIVE SUMMARY 2 CHAPTER 1: COMPANY PROFILE 3 CHAPTER 2: ASSESSMENT OF COUNTRY FACTORS 5 Factors Affecting Balance of Trade between United States and Maldives 5 Import Controls in Maldives 7 CHAPTER 3: USING THE FOREIGN EXCHANGE MARKET 8 The Spot Market 8 Analysis of USD/MVR Cross Rate for the Last 1 Month, 3 Months and Last Year 9 CHAPTER 4: USE OF FORWARDS AND FUTURES MARKET 11 Analysis of Future Price Vs Spot Rate 12 CHAPTER 5: USING CURRENCY OPTIONS 13 CHAPTERRead MoreInternational Business Competing in the Global Marketplace 8th Edition Charles W. L. 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Mullah Mohammed Omar Free Essays

Mullah Mohammed Omar is one of the most influential and devoted spiritual leaders and founders of the Taliban movement in Afghanistan. Along with Osama Bin Laden and other Islamic activists, he was behind the 9/11 attacks. Currently, as he fled into hiding and remains at large, Omar is considered to be a serious threat to the USA and its allies. We will write a custom essay sample on Mullah Mohammed Omar or any similar topic only for you Order Now That is why he is among the â€Å"Most Wanted† terrorists, and American Government is ready to pay up to 10 million dollars for any true information bringing to his capture (Rewards for Justice). Born in 1959, he participated in the resistance battles against the Soviet Union army in the Afghan War and was wounded. After the collapse of Soviet regime in Afghanistan, Omar and a group of his loyal supporters (including Bin Laden) organized the Taliban movement. In 1996 this organization, led by former military commanders, took over the power in Afghanistan, making Omar the Ruler (Emir) titled â€Å"Commander of the Faithful†.   He imposed a very tough version of Islamic laws and unlimited severity upon the country. Omar expressed support of devastating attacks on the US in 2001. Like all Taliban leaders, he revealed his extremist viewpoints on the policies of the US. In his interviews right after the tragic events of September 11, he repeatedly underlined seriousness and brutality of terrorist plans: â€Å"..The real matter is the extinction of America..† (BBC). â€Å".. Everyone is afraid of America and wants to please it. But Americans will not be able to prevent such acts like the one that has just occurred [9/11]..† (The Guardian). After the attacks Omar is reported to shelter Bin Laden and his al-Qaeda activists in Afghanistan. But in the end of the year 2001 he was forced to break away from his residence in Kandahar during the military operation. Despite the fact that his current location is unknown, Mullah Omar continuously releases some politically daring or threatening statements, which are delivered by his messengers and spokesmen. Recently he is alleged to hide somewhere on Pakistan territories. Bibliography:  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Interview with Mullah Omar.† BBC News. Official Web-site of BBC. 24 Aug. 2001. 03 Nov. 2007 http://news.bbc.co.uk/2/hi/south_asia/1657368.stm.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   MacDonell, Pat. â€Å"Mightier Than the Sword.† The Middle East 1 Feb. 2007: 75.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Mullah Omar in His Own Words.† The Guardian 26 Sept. 2001: 46.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Rashid, Ahmed. â€Å"Taliban: Militant Islam, Oil, and Fundamentalism in Central Asia.† New Heaven, CT: Yale University Press, 2003.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Wanted. Mullah Omar.† Rewards for Justice Program. US Department of State. 03 Nov. 2007 http://www.rewardsforjustice.net/english/index.cfm?page=MullahOmar. How to cite Mullah Mohammed Omar, Essay examples

Construction Contracts in Context-Free-Samples-Myassignmenthelp.com

Question: Read this legal briefing paper (by Fenwick Elliott) relating to relatively recent case law on contractual liquidated damages, and penalty. Write an internal company memo explaining the key legal and practical implications for construction contracts of these developments in the case law. Answer: Internal memo To, Contract team/ project control office From, Contracts Manager Subject: primary legal and practical implication of liquidated damage in construction It is a common fact that the contractor of a commercial contract will suffer irreparable loss if the project delays and the profit margin will also be affected by that. In every contractual agreement, there are certain provisions on the liquidated damage to protect the employer or the contractors to sustain loss from the project. However, it has been advised that the provision of liquidated damage has been widening by the Supreme Court and it is therefore, required to be applied after proper evaluation. While considering the scope and impact of the liquidated damage in commercial contracts or construction, the Court has made a distinction in between the liquidated damage provision and law of penalties in the light of two historical cases of Cavendish Square Holdings v MakdessiandParking Eye Limited v Beavis. It has been observed by the court that the employers are not mandatorily required to prove the actual estimated loss under the liquidated damage provision and options are still open for them to make claim for liquidated damage. However, if the liquidated damage is unable to characterize the pre-estimated loss of the employer, the contractor can challenge the provision on the basis of penalty clause[1]. The difference between the liquidated damage and penalties has been established for the first time in the case of Dunlop v Matthew Tyre Co Limited v New Garage Motor Co Limited[2]. It had been observed by the court that penalty will be imposed on the parties if any breach has been made against any contractual terms and the breach must be extravagant and unconscionable. In the case of Cavendish Square Holdings v Makdessi[3], it has been observed by the court that where the level of liquidated damage does not represent the pre-estimate loss of the employer and failed to justify the commercial credibility, it will be excluded from the provision of penalty clauses. It has further been observed by the court that in case of penalty, the nature of liquidated damage clause should be penal and unconscionable and where the clauses are primary; the breaching parties are required to pay the liquidated damage only for delay in the work. The court was of the view that liquidated damage is differen t from penalty as it is extended beyond the recovery of financial loss and the same principle has been established in Parking Eye Limited v Beavis appeal[4]. Therefore, it can be concluded that the provision of the liquidated damage should be reviewed for evaluating the claim made by the employer for the purpose to determine whether the application for claim can be challenged or not and it has a primary legal obligation. Kind Regards Dated: Signed Contracts Manager References: Cavendish Square Holdings v Makdessi [2013] EWCA Civ 1539 Dunlop v Matthew Tyre Co Limited v New Garage Motor Co Limited (1915) AC 79. Nicholson, Alex. "Too entrenched to be challenged? A commentary on the rule against contractual penalties post Cavendish v Makdessi and ParkingEye v Beavis."European Journal of Current Legal Issues22.3 (2016). Parking Eye Limited v Beavis appeal [2015] UKSC 67 Nicholson, Alex. "Too entrenched to be challenged? A commentary on the rule against contractual penalties post Cavendish v Makdessi and ParkingEye v Beavis."European Journal of Current Legal Issues22.3 (2016). (1915) AC 79. [2013] EWCA Civ 1539 [2015] UKSC 67