The Information Asymmetry Effects of Expanded Disclosures About Derivative and Hedging Activities
Published Online:21 Dec 2021https://doi.org/10.1287/mnsc.2021.4198
References
- (2006) Does recognition vs. disclosure matter? Evidence from value-relevance of banks’ recognized and disclosed derivative financial instruments. Accounting Rev. 81(3):567–588.Crossref, Google Scholar
- (2011) Effects of SFAS 133 on the risk relevance of accounting measures of banks’ derivative exposures. Accounting Rev. 86(3):769–804.Crossref, Google Scholar
- (2016) Director networks and informed traders. J. Accounting Econom. 62(1):1–23.Crossref, Google Scholar
- (2001) The use of foreign currency derivatives and firm market value. Rev. Financial Stud. 14(1):243–276.Crossref, Google Scholar
- (2015) The structure of voluntary disclosure narratives: Evidence from tone dispersion. J. Accounting Res. 53(2):241–274.Crossref, Google Scholar
- (2018) Theory, research design assumptions, and causal inferences. J. Accounting Econom. 66(2–3):366–373.Crossref, Google Scholar
- (1971) The only game in town. Financial Anal. J. 27(2):12–14.Crossref, Google Scholar
- Bank for International Settlements (BIS) (2018) BIS statistical bulletin, September 2018. Report, Bank for International Settlements, Basel, Switzerland.Google Scholar
- (2014) Simultaneously discovering and quantifying risk types from textual risk disclosures. Management Sci. 60(6):1371–1391.Link, Google Scholar
- (1992) The causes and effects of mandated accounting standards: SFAS No. 94 as a test of the level playing field theory. J. Accounting Auditing Finance 7(4):509–530.Crossref, Google Scholar
- (2016) The impact of SEC disclosure monitoring on the uncertainty of fair value estimates. Accounting Rev. 91(2):349–375.Crossref, Google Scholar
- (2015) The real effects of credit line drawdowns. Finance and Economic Discussion Series Paper 2015-007, U.S. Board of Governors of the Federal Reserve System, Washington, DC. https://www.federalreserve.gov/econresdata/feds/2015/files/2015007pap.pdfGoogle Scholar
- (2015) Does coordinated presentation help credit analysts identify firm characteristics? Contemporary Accounting Res. 32(2):507–527.Crossref, Google Scholar
- (2018) The relevance/reliability impact the financial crisis and SFAS 161 had on the use and reporting of derivatives within the banking industry. Acad. Accounting Financial Stud. J. 22(1):1–23.Google Scholar
- (2018) Corporate hedging during the financial crisis. Working paper, Queen’s University, Kingston, ON, Canada.Google Scholar
- (2021) The effect of mandatory disclosure on market inefficiencies: Evidence from FASB Statement No. 161. Accounting Rev. 96(2):153–176.Crossref, Google Scholar
- (2014) The information content of mandatory risk factor disclosures in corporate filings. Rev. Accounting Stud. 19(1):396–455.Crossref, Google Scholar
- (2016) Do analysts understand the economic and reporting complexities of derivatives? J. Accounting Econom. 61(2):584–604.Crossref, Google Scholar
- (2021) Information externalities of SFAS 161: Evidence from supply chains. Accounting Rev. 96(4):179–202.Crossref, Google Scholar
- (1998) Options markets, self-fulfilling prophecies, and implied volatilities. Rev. Derivatives Res. 2(1):5–37.Crossref, Google Scholar
- (2016) Real and accounting effects of mandatory derivatives disclosures. Working paper, Lehigh University, Bethlehem, PA.Google Scholar
- (1983) Information effects on the bid-ask spread. J. Finance 38(5):1457–1469.Crossref, Google Scholar
- (2014) Does hedge accounting reflect firms’ risk management activities? Working paper, Washington and Lee University, Lexington, VA.Google Scholar
- (1991) Corporate financial hedging with proprietary information. J. Econom. Theory 53(2):261–286.Crossref, Google Scholar
- (1995) Corporate incentives for hedging and hedge accounting. Rev. Financial Stud. 8(3):743–771.Crossref, Google Scholar
- (1985) Optimal release of information by firms. J. Finance 40(4):1071–1094.Crossref, Google Scholar
- (2015) The information content of risk factor disclosures in quarterly reports. Accounting Horizons 29(4):887–916.Crossref, Google Scholar
- Financial Accounting Standards Board (FASB) (2008) Disclosures about derivative instruments and hedging activities—An amendment of FASB Statement No. 133. Summary of Statement 161, FASB, Norwalk, CT.Google Scholar
- Financial Accounting Standards Board (FASB) (2012) Disclosure framework. Discussion Paper, FASB, Norwalk, CT.Google Scholar
- Financial Accounting Standards Board (FASB) (2014) Proposed statement of financial accounting concepts—Conceptual framework for financial reporting: Chapter 8: Notes to financial statements. Exposure Draft, FASB, Norwalk, CT.Google Scholar
- Financial Accounting Standards Board (FASB) (2017) Derivatives and hedging (topic 815): Targeted improvements to accounting for hedging activities. Accounting Standards Update No. 2017-12, FASB, Norwalk, CT.Google Scholar
- (1997) Why firms use currency derivatives. J. Finance 52(4):1323–1354.Crossref, Google Scholar
- (1985) Bid, ask and transaction prices in a specialist market with heterogeneously informed traders. J. Financial Econom. 14(1):71–100.Crossref, Google Scholar
- (1999) The impact of derivatives on firm risk: An empirical examination of new derivative users. J. Accounting Econom. 26(1-3):319–351.Crossref, Google Scholar
- (2017) A theory of risk disclosure. Rev. Accounting Stud. 22(4):1459–1491.Crossref, Google Scholar
- (2018) Risk-factor disclosure and asset prices. Accounting Rev. 93(2):191–208.Crossref, Google Scholar
- (1998) Comprehensive income reporting and analysts’ valuation judgments. J. Accounting Res. 36(Supplement):47–75.Crossref, Google Scholar
- (1979) Hedging and the competitive firm under price uncertainty. Amer. Econom. Rev. 69(5):989–995.Google Scholar
- (2016) The benefits of specific risk-factor disclosures. Rev. Accounting Stud. 21(4):1005–1045.Crossref, Google Scholar
- (2012) Options, Futures, and Other Derivatives (Prentice Hall, Boston).Google Scholar
- International Accounting Standards Board (IASB) (2013) A review of the conceptual framework for financial reporting. Discussion Paper DP/2013/1, IFRS Foundation, London.Google Scholar
- (2012) The option to stock volume ratio and future returns. J. Financial Econom. 106(2):262–286.Crossref, Google Scholar
- Kelly JD (2007) Comment letter submitted to the Financial Accounting Standards Board on behalf of National City Corporation. Accessed December 7, 2021, https://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175818454029&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=295959&blobheadervalue1=filename%3D51214.pdf&blobcol=urldata&blobtable=MungoBlobs.Google Scholar
- (1994) Market liquidity and volume around earnings announcements. J. Accounting Econom. 17(1–2):41–67.Crossref, Google Scholar
- (2005) Judging the risk of financial instruments: Problems and potential remedies. Accounting Rev. 80(3):871–895.Crossref, Google Scholar
- (2008) Investor reactions to derivative use and outcomes. Rev. Accounting Stud. 13(4):571–597.Crossref, Google Scholar
- (2013) Textual risk disclosures and investors’ risk perceptions. Rev. Accounting Stud. 18(4):1088–1122.Crossref, Google Scholar
- (1988) Toward a theory of equitable and efficient accounting policy. Accounting Rev. 63(1):1–22.Google Scholar
- (2002) The effect of mandated market risk disclosures on trading volume sensitivity to interest rate, exchange rate, and commodity price movements. Accounting Rev. 77(2):343–377.Crossref, Google Scholar
- (2000) Effects of comprehensive-income characteristics on nonprofessional investors’ judgments: The role of financial-statement presentation format. Accounting Rev. 75(2):179–207.Crossref, Google Scholar
- (2018) Is hedge accounting designation informative about how firms use derivatives? Working paper, Indian School of Business, Hyderabad.Google Scholar
- (1996) Banks, risk, and FAS105 disclosures. J. Accounting Auditing Finance 11(3):453–490.Crossref, Google Scholar
- (2000) Asymmetric information about volatility: How does it affect implied volatility, option prices and market liquidity? Rev. Derivatives Res. 3(3):215–236.Crossref, Google Scholar
- (2006) The information in option volume for future stock prices. Rev. Financial Stud. 19(3):871–908.Crossref, Google Scholar
- (2013) Corporate risk management and hedge accounting. Contemporary Accounting Res. 30(1):116–139.Crossref, Google Scholar
- (2013) Risk management and firm value: Evidence from weather derivatives. J. Finance 68(5):2143–2176.Crossref, Google Scholar
- (2020) Determinants and consequences of firms’ derivative accounting decisions. J. Financial Reporting 5(1):81–114.Crossref, Google Scholar
- (2012) Processing fluency and investors’ reactions to disclosure readability. J. Accounting Res. 50(5):1319–1354.Crossref, Google Scholar
- (1999) Effect of SEC Financial Reporting Release No. 48 on derivative and market risk disclosures. Accounting Horizons 13(4):343–363.Crossref, Google Scholar
- (2002) Measures of word commonness. J. Quant. Linguistics 9(3):215–231.Crossref, Google Scholar
- (1997) The association between stock-price interest rate sensitivity and disclosures about derivative instruments. Accounting Rev. 72(1):87–109.Google Scholar
- (1981) Using financial data to measure effects of regulation. J. Law Econom. 24(1):121–158.Crossref, Google Scholar
- Securities and Exchange Commission (SEC) (2020) SEC proposes amendments to modernize and enhance financial disclosures. Press release, Securities and Exchange Commission, Washington, DC. https://www.sec.gov/news/press-release/2020-25.Google Scholar
- (2013) Voluntary disclosure and information asymmetry: Evidence from the 2005 securities offering reform. J. Accounting Res. 51(5):1299–1345.Crossref, Google Scholar
- (2019) Financial markets with trade on risk and return. Rev. Financial Stud. 32(10):4042–4078.Crossref, Google Scholar
- (1984) Optimal hedging policies. J. Financial Quant. Anal. 19(2):127–140.Crossref, Google Scholar
- (1996) Who manages risk? An empirical examination of risk management practices in the gold mining industry. J. Finance 51(4):1097–1137.Crossref, Google Scholar
- (1996) Value-relevance of banks’ derivatives disclosures. J. Accounting Econom. 22(1–3):327–355.Crossref, Google Scholar
- (2000) The association between SFAS no. 119 derivatives disclosures and the foreign exchange risk exposure of manufacturing firms. J. Accounting Res. 38(2):387–417.Crossref, Google Scholar
- (2010) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
- (2009) Effect of derivative accounting rules on corporate risk-management behavior. J. Accounting Econom. 47(3):244–264.Crossref, Google Scholar
- (2019) Strategic entry decisions, accounting signals, and risk management. Working paper, University of Connecticut, Storrs.Google Scholar

