The impact of fuel hedging on US airlines’ firm value / Yasmine HARRAKI / 2021

Titre : The impact of fuel hedging on US airlines’ firm value Type de document : Mémoire Auteurs : Yasmine HARRAKI, Auteur Année de publication : 2021 Importance : 24 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management EVALUATION D'UNE ENTREPRISE ; PERFORMANCE ; COMPTABILITE DE GESTION Résumé : The research revisits the popular problematic of whether fuel hedging has real implications on Tobin’s Q and accounting performance as a proxy of firm value. A quantitative analysis is conducted using a regression on a panel data of US airlines between 2012 and 2020. The analysis put in place try to examine value effects on the various metrics measuring the firm value: Tobin’s Q, ROE, EPS and Cash flow from operations over total assets. In the light of theoretical literature and empirical results, this paper believes that the percentage hedged of next year’s fuel consumption should demonstrates a positive relation with firm value. However, the probability of hedging wasn’t enough significant to establish a relevant link with Tobin’s Q neither with ROE. Besides, the accounting performance measured by EPS and the cash flow from operations to total assets ratio show a consistent and positive correlation with hedging. Some of the hedging determinants weren’t significant to confirm the relationship which binds them to firm value specially the case of investment opportunities. In general, results indicate that leverage and liquidity have a negative relationship with firm value. On the other hand, an airline with a larger size is more likely to score a lower Tobin’s Q than a small one. Programme : MSc Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=538593