Risk Management and Financial Derivatives Volume II

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Markets".

Deadline for manuscript submissions: closed (20 November 2022) | Viewed by 3801

Special Issue Editors


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Guest Editor
Faculty of Economics and Business Administration, West University of Timisoara, 300223 Timisoara, Romania
Interests: labor economics; international economics; environmental economics; econometric modelling
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Guest Editor
Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Dolj, Romania
Interests: banking; insurance; private pension funds; economics
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Financial derivatives are increasingly important credentials in a globalized modern economy, significantly shaped today by the COVID-19 outbreak. Companies’ risk exposure has reached extremely high levels, and managers are facing volatile situations of financial distress, digital challenges, stock market instability and financial losses. Derivative products are effective instruments that firms can use to mitigate financial risks and that are no longer nationwide but global and widely complicated. However, the debate is still open on whether derivatives are inherently detrimental financial instruments leading to companies’ financial failures or a positive innovation for risk management in global financial markets. This Special Issue addresses several important topics related to risk management and financial derivatives, and enhances advanced instruments and methods for optimal portfolio management using financial derivatives, to countervail the uncertainties of risk exposure. It welcomes submissions that represent original, high-quality theoretical and empirical research, as well as policy-oriented research papers, that confer clear-cut findings to strengthen the knowledge in this scientific field. Empirical articles on optimal portfolio management, by applying financial derivatives, for various types of companies and groups of countries are particularly encouraged.

Prof. Dr. Eleftherios Thalassinos
Prof. Dr. Noja Grațiela Georgiana
Prof. Dr. Mirela Cristea
Guest Editors

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Keywords

  • financial econometrics
  • risk management and analysis
  • quantitative finance
  • firm value and performance
  • derivative products
  • hedging
  • financial markets
  • financial distress
  • foreign exchange market
  • market volatility
  • applied econometrics

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Published Papers (1 paper)

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Research

14 pages, 599 KiB  
Article
Use of Derivatives and Market Valuation of the Banking Sector: Evidence from the European Union
by Marius Cristian Miloș and Laura Raisa Miloș
J. Risk Financial Manag. 2022, 15(11), 501; https://doi.org/10.3390/jrfm15110501 - 27 Oct 2022
Cited by 3 | Viewed by 2893
Abstract
(1) Background: This paper aims to investigate whether the derivatives usage by the banking sector in the European Union has impacted its market valuation in the aftermath of the financial crisis. (2) Methods: Our analysis takes 120 European financial institutions listed on the [...] Read more.
(1) Background: This paper aims to investigate whether the derivatives usage by the banking sector in the European Union has impacted its market valuation in the aftermath of the financial crisis. (2) Methods: Our analysis takes 120 European financial institutions listed on the European Union stock exchange over a period of 14 years into account (2008–2021). We use the generalized method of moments (GMM) to assess whether the use of derivatives allows financial intermediaries to increase their market value. Control variables, such as size, profitability, expectations of the market, bank risk, liquidity performance, and financial condition, are also taken into consideration. (3) Results: Our main findings suggest that market value is affected negatively by derivative asset accumulation. (4) Conclusions: The results are in line with the studies that investigated the impact of financial derivatives on the market value and found a negative connection between the two, justified by the suboptimal hedging or the higher volatility of the earnings. Full article
(This article belongs to the Special Issue Risk Management and Financial Derivatives Volume II)
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