Use of derivative financial instruments and profitability of non-financial companies of Lima’s Stock Exchange

Authors

DOI:

https://doi.org/10.15381/quipu.v30i64.22923

Keywords:

derivatives, hedging, profitability, structural equations, Stock Exchange

Abstract

Objective: To establish the relation between the use of derivative financial instruments and the profitability of non-financial companies in Lima’s Stock Exchange (LSE). Method: The research was quantitative in nature with a non-experimental design and transversal of correlational type. By using information from 149 non-financial companies, the model of structural structures was applied in order to know the relation between the variables. Results: It is evident that the financial instruments derived from interest rate, exchange rate and price have a low positive relations with the profitability of the non-financial companies of the LSE. Conclusion: Although there is a positive relation between the use of derivative financial instruments and the profitability of non-financial companies on the LSE, it is not significant, which may be due to the small number of companies that used financial instruments.

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Author Biography

  • Leenin Krenlin Dominguez Soto, Universidad Nacional Mayor de San Marcos. Lima, Peru

    Certified Public Accountant graduated from the Universidad Nacional Mayor de San Marcos with a Master's degree in Banking and Finance from the same university and a Master's degree in corporate finance from EUDE Spain; he was a professor of Financial Accounting at the Universidad Tecnológica del Perú and a lecturer on IFRS at various academic events.

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Published

2022-12-29

Issue

Vol. 30 No. 64 (2022)

Section

Original papers

License

Copyright (c) 2022 Leenin Krenlin Dominguez Soto

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

Dominguez Soto, L. K. (2022). Use of derivative financial instruments and profitability of non-financial companies of Lima’s Stock Exchange. Quipukamayoc, 30(64), 23-31. https://doi.org/10.15381/quipu.v30i64.22923