Fuel and foreign currency derivatives use in the Us airline industry - the impact on Tobin’s Q

Detalhes bibliográficos
Autor(a) principal: Conceição, Francisco Duarte Faria Garcia da
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.
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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
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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
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