Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q
Autor(a) principal: | |
---|---|
Data de Publicação: | 2018 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/35450 |
Resumo: | This thesis examines the use of foreign currency and fuel derivatives by a sample of 26 passenger airlines, between 2000 and 2016. The main goal is to study the impact on Tobin’s Q. Based on previous literature, I investigate if there is a premium associated with using these derivatives, controlling for other variables that might affect Q. The results are not statistically significant but point to a positive premium associated with the use of currency derivatives and a discount for the use of fuel derivatives. These results are consistent with an alternative approach, using ROA, stock returns and revenue growth sensitivity to fuel and currency prices. I also study the likeliness of a firm hedging these risks based on its fundamentals. A negative correlation between jet fuel prices and the price of the US dollar relative to a representative basket of currencies indicates the possible presence of a natural hedge, meaning that losses from high prices in one of the factors may be offset by gains in the other. |
id |
RCAP_1f0d0b326af2bc6c83da1b34ee847465 |
---|---|
oai_identifier_str |
oai:run.unl.pt:10362/35450 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s QDerivativesAirlinesTobin´s qHedgingJet fuelForeign currencyDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis thesis examines the use of foreign currency and fuel derivatives by a sample of 26 passenger airlines, between 2000 and 2016. The main goal is to study the impact on Tobin’s Q. Based on previous literature, I investigate if there is a premium associated with using these derivatives, controlling for other variables that might affect Q. The results are not statistically significant but point to a positive premium associated with the use of currency derivatives and a discount for the use of fuel derivatives. These results are consistent with an alternative approach, using ROA, stock returns and revenue growth sensitivity to fuel and currency prices. I also study the likeliness of a firm hedging these risks based on its fundamentals. A negative correlation between jet fuel prices and the price of the US dollar relative to a representative basket of currencies indicates the possible presence of a natural hedge, meaning that losses from high prices in one of the factors may be offset by gains in the other.Anjos, FernandoRUNConceição, Francisco Duarte Faria Garcia da2019-01-20T01:30:33Z2018-01-202018-01-20T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/35450TID:201863766enginfo:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:19:21Zoai:run.unl.pt:10362/35450Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:30:18.732056Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
title |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
spellingShingle |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q Conceição, Francisco Duarte Faria Garcia da Derivatives Airlines Tobin´s q Hedging Jet fuel Foreign currency Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
title_full |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
title_fullStr |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
title_full_unstemmed |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
title_sort |
Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q |
author |
Conceição, Francisco Duarte Faria Garcia da |
author_facet |
Conceição, Francisco Duarte Faria Garcia da |
author_role |
author |
dc.contributor.none.fl_str_mv |
Anjos, Fernando RUN |
dc.contributor.author.fl_str_mv |
Conceição, Francisco Duarte Faria Garcia da |
dc.subject.por.fl_str_mv |
Derivatives Airlines Tobin´s q Hedging Jet fuel Foreign currency Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Derivatives Airlines Tobin´s q Hedging Jet fuel Foreign currency Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This thesis examines the use of foreign currency and fuel derivatives by a sample of 26 passenger airlines, between 2000 and 2016. The main goal is to study the impact on Tobin’s Q. Based on previous literature, I investigate if there is a premium associated with using these derivatives, controlling for other variables that might affect Q. The results are not statistically significant but point to a positive premium associated with the use of currency derivatives and a discount for the use of fuel derivatives. These results are consistent with an alternative approach, using ROA, stock returns and revenue growth sensitivity to fuel and currency prices. I also study the likeliness of a firm hedging these risks based on its fundamentals. A negative correlation between jet fuel prices and the price of the US dollar relative to a representative basket of currencies indicates the possible presence of a natural hedge, meaning that losses from high prices in one of the factors may be offset by gains in the other. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-01-20 2018-01-20T00:00:00Z 2019-01-20T01:30:33Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/35450 TID:201863766 |
url |
http://hdl.handle.net/10362/35450 |
identifier_str_mv |
TID:201863766 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799137927770406912 |