Determinants of Derivative Use : An Empirical Analysis of Selected ASEAN+3 Countries

This study examines the relationship between several factors such as firm value, agency costs and profitability and a firms’ use of financial derivatives. The analysis differentiates between derivative assets and derivative liabilities and utilize a annual panel data set of nonfinancial firms from 2011 to 2015 for Singapore, Malaysia, Thailand and Philippines. Several firm-specific factors are identified to be associated with derivatives usage. The results are robust to alternative specifications, econometric procedures that correct for potential clustering of errors and endogeneity issues