Effect of derivative accounting rules on corporate risk-management behavior

• 成果类型: Article
• 署名作者: Zhang, Haiwen
• 署名单位: University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.11.007
• 发表日期: 2009
• 关键词: hedge disclosures; FIRMS; speculation; prices; income

摘要

I examine the effect of the accounting standard for derivative instruments (SFAS No. 133) on corporate risk-management behavior. I classify a derivative user as an effective hedger (EH firm) if its risk exposures decreased after the initiation of the derivatives program, and as an ineffective hedger/speculator (IS firm) otherwise. I find that volatility of cash flows and risk exposures related to interest rate, foreign exchange rate, and commodity price decrease significantly for IS firms but not for EH firms, suggesting that IS firms engaged in More prudent risk-management activities after the adoption of SFAS No.133. (C) 2008 Elsevier B.V. All rights reserved.