Assessing the use of derivatives as part of a risk-management strategy

• 成果类型: Article
• 署名作者: Beatty, A
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(98)00036-6
• 发表日期: 1999
• 关键词: determinants; policies

摘要

Guay (1998, Journal of Accounting and Economics, this issue) addresses potential endogeneity biases in cross-sectional studies of derivative use by examining derivative initiations. When derivatives are only part of a risk-management strategy, tests comparing derivative users versus non-users may be biased. One solution to this difficult problem is to examine an exogenous change in derivative use. Guay (1998) identifies a recent reduction in transactions costs as a potential exogenous shock to derivative use. However, if cost reductions cannot explain derivative initiations, then his analysis may not eliminate the biases in previous research. Studies isolating alternative exogenous changes in firms' risk management strategies may provide further insights. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classification: G39; G32; C21.