Derivatives as an instrument of financial management in international companies

Magisterarbeit, die am 26.12.2003 erfolgreich an einer Universität in Ukraine im Fachbereich Economics and Management eingereicht wurde. Abstract: The object of investigation: stock market derivatives: Depository Receipts and stock indexes. The goal of investigation: to develop the strategy of implementation of Depository Receipt Programs for Ukrainian corporations, and to create the Ukrainian stock index to develop the Ukrainian market of derivatives. The methodology: investigation of the foreign and Ukrainian securities and derivative markets in order to create the systems of Depository Receipt and Stock Index development, responding to the peculiarities of the Ukrainian stock markets. The results: the proposal for development of the American Depository Receipts for the Ukrainian corporations; the creation of the Ukrainian Liquidity Index (ULI), which reflects the dynamics of the Ukrainian stock market and is ready be the basis for development of futures and options on this index. The area of implementation: Ukrainian corporations, Ukrainian exchanges and trading systems, domestic and foreign financial analysts. The conclusions: There are many problems in the Ukrainian stock market: illiquidity, undervaluation of stock, low level of attractiveness for foreign and domestic investor and speculators. Besides, the Ukrainian corporations do not use the potential of the stock market, as it is done abroad. Therefore, such measures are possible to improve the situation: development of Depository Receipts, money privatization, improvement of disclosure of information, development of mutual and investment funds, development of the stock indexes, as a hedging tool. The American Depository Receipts are the very good instruments for the Ukrainian companies. They could be created by a Ukrainian corporation with the total spending from $40,000 and from 1 month with all the procedures done. At the same time, this will allow to