An Empirical Study of the Impact of Multinational Corporations' Use of Foreign Exchange Derivatives on Corporate Value Mediating-Role of Agency Cost

Based on the perspective that hedging can reduce agency costs, this paper uses stata12 to empirically analyze the relationship between multinational companies whose overseas export revenue accounts for 10% of total operating income (Jorion, 1990; He & Ng, 1998) using foreign exchange derivatives to company value, collecting 2017 financial data from Shenzhen Stock Exchange and the Shanghai Stock Exchange A-share listed company. It turns out that multinational companies using foreign exchange derivatives can improve agency efficiency, reduce agency costs, and increase company value.