摘要：Financial derivatives play an important role in helping companies manage the risk involved in interest
rates, currency exchange rates, and equity markets. This study investigates the factors that
influence derivative usage in Malaysian firms, as not much research has been conducted on the
Malaysian market. Objectively, this study aims to determine the application of derivatives in Malaysian
corporations by using a sample of 58 nonfinancial firms over the period 2011 to 2016. Relying
on secondary data and focusing on a quantitative approach, the regression results conclude that
the leverage, capital expenditure ratio and profitability factors are significant in the use of financial
derivatives among Malaysian financial firms. This study provides some insights for policymakers to
understand how derivatives can be used as off-balance-sheet risk management tools for Malaysian
financial firms, thus minimizing these firms’ risk exposure.
