Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Importance Of Sustaining And Improving Company'S Business Success By Using Indicator Of The Degree Of Hedging Necessity

Contents:

Author Info

  • Ivo Speranda
Registered author(s):

    Abstract

    This paper considers influence of hedging regarded as a technique for protecting companies against unforeseeable events which might seriously influence company's business, primarily its financial stability and its business results The econometric model is thus created to test the impact of hedging on companies' EBIT and to determine the necessity of hedging usage. Regression method and model were used to assess the impact of change in dollar and kunai exchange rates in relation to EBIT measure in 10 year period. Additionally the completely new analytic tool named Indicator of the degree of hedging necessity IZI has been introduced This paper shows huge efficacy of hedging as a protection tool, firstly evident through positive effects on EBIT and therefore on the company and the entire economy's improved competitiveness degree. In this paper the completely new indicator has been introduced and explained in order to assess the necessity of cash flow protection. Finally, it's obvious that hedging as a tool of protection, contributes a lot in achieving better operational and financial goals which leads to a higher degree of the company's competitiveness on the international market.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://repec.mnje.com/mje/2013/v09-n04/mje_2013_v09-n04-a12.pdf
    Download Restriction: no

    File URL: http://repec.mnje.com/mje/2013/v09-n04/mje_2013_v09-n04-a12.html
    Download Restriction: no

    Bibliographic Info

    Article provided by Economic Laboratory for Transition Research (ELIT) in its journal Montenegrin Journal of Economics.

    Volume (Year): 9 (2013)
    Issue (Month): 4 ()
    Pages: 21-38

    as in new window
    Handle: RePEc:mje:mjejnl:v:9:y:2013:i:4:p:21-38

    Contact details of provider:
    Web page: http://www.mnje.com

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mje:mjejnl:v:9:y:2013:i:4:p:21-38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.