Abstract:

Companies encounter certain risks in financial markets. One of the methods used by the companies is the derivative instruments used with the aim of avoiding risks such as foreign exchange, liquidity and interest rate. In this study, financial statements and footnotes of the companies, which are members of Borsa Istanbul other than banking sector, were reviewed in the study. When the share of derivative instrument contracts in the financial accounts were considered, it was noted that utilization of derivative instruments were realized relatively low and they were used mostly for hedging. According to the data obtained, the most important part of the objective reasons for the use of derivatives for hedging contracts of the companies (hedging) are. In addition, the company is the most preferred derivative contracts swaps contracts, it futures, options and forwards are followed. Derivatives to hedge against interest rate risk most of the companies examined financial statements and footnot

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