When Do Qualitative Risk Disclosures Backfire? The Effects of a Mismatch in Hedge Disclosure Formats on Investors' Judgments
成果类型：
Article
署名作者：
He, Yanan; Tan, Hun-Tong; Yeo, Feng; Zhang, Jixun
署名单位：
Shanghai Lixin University of Accounting & Finance; Nanyang Technological University; University of South Carolina System; University of South Carolina Columbia; Nankai University
刊物名称：
CONTEMPORARY ACCOUNTING RESEARCH
ISSN/ISSBN：
0823-9150
DOI：
10.1111/1911-3846.12518
发表日期：
2019
页码：
2093-2112
关键词：
摘要：
Disclosure standards mandate the quantitative disclosure of hedging-instrument-related risks but not the disclosure of hedged-item-related risks. We examine how a match (mismatch) in formats, caused by making quantitative (qualitative) hedged item disclosures alongside quantitative hedging instrument disclosures, affects investors' integration of information from these two related disclosures. Our first experiment varies the hedged item disclosure format (quantitative or qualitative) and the portion of risk hedged (small or large). We find that when disclosure formats are mismatched, the less comparable nature of the two disclosures caused investors to neglect the offsetting relationship when assessing net risks. As a result, risk and investment judgments were influenced by the more prominent quantitative hedging instrument disclosures. Our second experiment finds that the use of a qualitative debiaser that clarifies the relationship between the two disclosures led to the integration of information and mitigated this effect.