Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 79 , 26 April 2024
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An Analysis on Hedging Strategies of Corporates under Ukraine Conflict
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Abstract
The Russia-Ukraine conflict has precipitated significant market volatility, notably affecting the energy and agricultural sectors. This paper offers a concise analysis of corporate hedging tactics in this tumultuous context. Specifically, it examines the energy sector's reaction to fuel price escalations and supply disruptions, highlighting Trafigura Group's revised risk management strategies utilizing financial derivatives to combat market unpredictability. Concurrently, the paper scrutinizes the Louis Dreyfus Company's (LDC) strategic response within the agricultural domain, acknowledging DC's proactive risk management measures, including asset insurance, alternative operational frameworks, and advanced risk assessment protocols. Additionally, the paper delves into the strategic allocation of gold as a corporate hedging instrument amidst geopolitical strife, evaluating its historical efficacy, crisis performance, and status as a potential financial refuge. The discourse concludes by articulating the imperative for adaptive, ongoing recalibration of corporate hedging strategies, underlining the integration of conventional assets like gold for comprehensive risk management amidst the ongoing Russia-Ukraine crisis.
Keywords
Hedging Strategies, Options, Market Volatility, Corporate Performance
References
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-381-4
- ISBN (Online)
- 978-1-83558-382-1
- Published Date
- 26 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/79/20241794
- Copyright
- 26 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited