search query: @indexterm exchange rates / total: 1242
reference: 18 / 1242
« previous | next »
Author:Zhang, H.
Title:Effect of derivative accounting rules on corporate risk-management behavior
Journal:Journal of Accounting & Economics
2009 : JUN, VOL. 47:3, p. 244-264
Index terms:derivative securities
risk management
accounting standards
hedging
exchange rates
Language:eng
Abstract:This paper investigates the effect of the acocunting standard for derivative instruments (SFAS No. 133) on corporate risk-management behavior. A derivative user is classified as an 'effective hedger' (hereafter as: EH firm) if its risk exposures decreased after the initation of the derivatives program, and as an 'ineffective hedger / speculator' (hereafter as: IS firm) otherwise. The results show 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, which suggests that IS firms engaged in more prudent risk-management activities after the adoption of SFAS No. 133.
SCIMA record nr: 270964
add to basket
« previous | next »
SCIMA