The effect of Derivative Usage on Firm Value During COVID-19, Evidence from The Netherlands

This study investigates how derivative usage impacts firm value of Dutch non-financial companies during COVID-19. The goal is to understand the advantages of employing derivatives in times of crisis and determine if companies benefit from them in challenging economic periods. Based on a dataset comprising 68 non-financial companies listed on Euronext Amsterdam during 2019-2022, I find no significant difference of derivative usage on firm value, before and during COVID-19. These findings align with prior research, which also yielded inconclusive results. The study enhances our understanding of risk management strategies in non-financial sectors during economic uncertainty. Future research should explore broader datasets with more longitudinal information to deepen these insights.