2.內部控制完善者亦傾向屬於高科技類股、集團企業成員及已經有採用避險決策者。 In order to decreasing fluctuation of coporate value, enterprises pay attention to risk management and use derivative financial instruments to hedge. Since derivative financial instruments are high-leverage and fairly risky, incorrect using could cause hung losses or distress. The internal control system for derivatives is very important when companies hedge by them. By using a sample of207 non-fmancial and insurance public corporate with internal control data in Taiwan stock exchange during 1997-1999 to address the relationship hedging strategy and characteristics of corporate, to know the determinants of internal control and hedging instrument by choosing.
The conclusions of this study are following:
l.The determinants of companies using derivative fmancial instruments are affected significantly by expected tax, financial distress, agency cost, risk exposure, internal control system and some other characteristics of corporate.
2.Compony with perfect internal control systems are more likely to be the group enterprises, high-technical industry and to hedge.