Ph.D. Student in Accounting, Islamic Azad University, Science and Research Branch, Tehran, Iran
Abstract
Abstract This study was conducted to investigate the effects of using derivatives on the development of financial businesses. The elements of the analysis were risk management, efficiency, price stabilization, and price discovery. The required data were collected from the financial officers using questionnaires. The collected data were analyzed using descriptive and inferential statistics. The qualitative responses were analyzed using partial least squares structural equation modeling (PLS-SEM). The analysis was carried out to determine the development of financial businesses before and after the adoption of derivatives by these companies. According to the findings, risk management, efficiency, price stabilization, and price discovery positively affect the development of financial businesses. According to some empirical studies, derivatives concern the control of business risks. Krause (2017) confirmed the reducing effect of derivatives on risks, arguing that companies use derivatives to maximize profitability and reduce investment uncertainties. According to some studies such as (Cole, 2019) and Bhagwat et al. (2022), derivatives affect financial performance. This evidence goes hand in hand with the fact that business risks are the main obstacles to financial performance. Companies in emerging markets have recently increased the use of derivatives to protect their positions. So, the derivatives market has experienced rapid growth in recent years. Information on the use of corporate derivatives is widely available in the developed world. However, whether the use of derivatives increases the financial performance of a company is still controversial, especially in developing countries
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MLA
Mansouri Nalbandan,M , and Shaban Shahriary,Z . "The Role and Function of Derivatives in the Development of Financial Businesses: The Future Studies of Financial Markets", International Journal of Financial Technology Perspective, 2, 5, 2025, 19-30.
HARVARD
Mansouri Nalbandan M, Shaban Shahriary Z. (2025). 'The Role and Function of Derivatives in the Development of Financial Businesses: The Future Studies of Financial Markets', International Journal of Financial Technology Perspective, 2(5), pp. 19-30.
CHICAGO
M Mansouri Nalbandan and Z Shaban Shahriary, "The Role and Function of Derivatives in the Development of Financial Businesses: The Future Studies of Financial Markets," International Journal of Financial Technology Perspective, 2 5 (2025): 19-30,
VANCOUVER
Mansouri Nalbandan M, Shaban Shahriary Z. The Role and Function of Derivatives in the Development of Financial Businesses: The Future Studies of Financial Markets. IJFTP. 2025;2(5):19-30.
