Do enhanced derivative disclosures work? An informational perspective
Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects of derivatives usage on firm performance. Using a h...
Gespeichert in:
| Veröffentlicht in: | The journal of futures markets 2022-01, Vol.42 (1), p.24-60 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 60 |
|---|---|
| container_issue | 1 |
| container_start_page | 24 |
| container_title | The journal of futures markets |
| container_volume | 42 |
| creator | He, Guanming Ren, Helen Mengbing Taffler, Richard |
| description | Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects of derivatives usage on firm performance. Using a hand‐collected sample of US listed firms and a difference‐in‐differences research design, we find that, compared with nonderivative‐users, derivative‐users compliant with SFAS 161 experience a significantly greater reduction in stock illiquidity and the probability of informed trading in the post‐SFAS 161 period, and such impact is evident only for firms with a high degree of investor attention. |
| doi_str_mv | 10.1002/fut.22275 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2607500309</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2607500309</sourcerecordid><originalsourceid>FETCH-LOGICAL-c4225-9ebefd4cb08753777669beee5b51275084131d66873bdb8313a760f12678dd743</originalsourceid><addsrcrecordid>eNp10E9LwzAYx_EgCs7pwXcQ8OSh25OkTZqTjLmpMPCynUP_PMXOrqnJurF3b2YFT56ey4cvDz9C7hlMGACfVv1-wjlXyQUZMdAy0lrEl2QEXEGkBIuvyY33WwDQOoYRWTxbiu1H1hZY0hJdfcj29QFpWfuisb536OnRus8nOmtp3VbW7QKwbdbQDp3vsDjzW3JVZY3Hu987JpvlYj1_jVbvL2_z2SoqYs6TSGOOVRkXOaQqEUopKXWOiEmesPAypDETrJQyVSIv81QwkSkJFeNSpWWpYjEmD0O3c_arR783W9u78Iw3XEIogAAd1OOgCme9d1iZztW7zJ0MA3NeyYSVzM9KwdLBYmHb2v9JlUqAJElZINOBHOsGT_-3zHKzHqLfCAdyjg</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2607500309</pqid></control><display><type>article</type><title>Do enhanced derivative disclosures work? An informational perspective</title><source>Business Source Complete</source><source>Wiley Online Library All Journals</source><creator>He, Guanming ; Ren, Helen Mengbing ; Taffler, Richard</creator><creatorcontrib>He, Guanming ; Ren, Helen Mengbing ; Taffler, Richard</creatorcontrib><description>Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects of derivatives usage on firm performance. Using a hand‐collected sample of US listed firms and a difference‐in‐differences research design, we find that, compared with nonderivative‐users, derivative‐users compliant with SFAS 161 experience a significantly greater reduction in stock illiquidity and the probability of informed trading in the post‐SFAS 161 period, and such impact is evident only for firms with a high degree of investor attention.</description><identifier>ISSN: 0270-7314</identifier><identifier>EISSN: 1096-9934</identifier><identifier>DOI: 10.1002/fut.22275</identifier><language>eng</language><publisher>Hoboken: Wiley Periodicals Inc</publisher><subject>Accounting ; Accounting standards ; Companies ; derivative disclosures ; Derivatives ; Hedging ; information asymmetry ; investor attention ; Organizational performance ; PIN ; SFAS 161 ; stock liquidity ; Trading</subject><ispartof>The journal of futures markets, 2022-01, Vol.42 (1), p.24-60</ispartof><rights>2021 Wiley Periodicals LLC</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c4225-9ebefd4cb08753777669beee5b51275084131d66873bdb8313a760f12678dd743</citedby><cites>FETCH-LOGICAL-c4225-9ebefd4cb08753777669beee5b51275084131d66873bdb8313a760f12678dd743</cites><orcidid>0000-0001-6721-6269 ; 0000-0003-1621-8533 ; 0000-0002-4879-6795</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1002%2Ffut.22275$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1002%2Ffut.22275$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>314,780,784,1416,27923,27924,45573,45574</link.rule.ids></links><search><creatorcontrib>He, Guanming</creatorcontrib><creatorcontrib>Ren, Helen Mengbing</creatorcontrib><creatorcontrib>Taffler, Richard</creatorcontrib><title>Do enhanced derivative disclosures work? An informational perspective</title><title>The journal of futures markets</title><description>Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects of derivatives usage on firm performance. Using a hand‐collected sample of US listed firms and a difference‐in‐differences research design, we find that, compared with nonderivative‐users, derivative‐users compliant with SFAS 161 experience a significantly greater reduction in stock illiquidity and the probability of informed trading in the post‐SFAS 161 period, and such impact is evident only for firms with a high degree of investor attention.</description><subject>Accounting</subject><subject>Accounting standards</subject><subject>Companies</subject><subject>derivative disclosures</subject><subject>Derivatives</subject><subject>Hedging</subject><subject>information asymmetry</subject><subject>investor attention</subject><subject>Organizational performance</subject><subject>PIN</subject><subject>SFAS 161</subject><subject>stock liquidity</subject><subject>Trading</subject><issn>0270-7314</issn><issn>1096-9934</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2022</creationdate><recordtype>article</recordtype><recordid>eNp10E9LwzAYx_EgCs7pwXcQ8OSh25OkTZqTjLmpMPCynUP_PMXOrqnJurF3b2YFT56ey4cvDz9C7hlMGACfVv1-wjlXyQUZMdAy0lrEl2QEXEGkBIuvyY33WwDQOoYRWTxbiu1H1hZY0hJdfcj29QFpWfuisb536OnRus8nOmtp3VbW7QKwbdbQDp3vsDjzW3JVZY3Hu987JpvlYj1_jVbvL2_z2SoqYs6TSGOOVRkXOaQqEUopKXWOiEmesPAypDETrJQyVSIv81QwkSkJFeNSpWWpYjEmD0O3c_arR783W9u78Iw3XEIogAAd1OOgCme9d1iZztW7zJ0MA3NeyYSVzM9KwdLBYmHb2v9JlUqAJElZINOBHOsGT_-3zHKzHqLfCAdyjg</recordid><startdate>202201</startdate><enddate>202201</enddate><creator>He, Guanming</creator><creator>Ren, Helen Mengbing</creator><creator>Taffler, Richard</creator><general>Wiley Periodicals Inc</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope><orcidid>https://orcid.org/0000-0001-6721-6269</orcidid><orcidid>https://orcid.org/0000-0003-1621-8533</orcidid><orcidid>https://orcid.org/0000-0002-4879-6795</orcidid></search><sort><creationdate>202201</creationdate><title>Do enhanced derivative disclosures work? An informational perspective</title><author>He, Guanming ; Ren, Helen Mengbing ; Taffler, Richard</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4225-9ebefd4cb08753777669beee5b51275084131d66873bdb8313a760f12678dd743</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2022</creationdate><topic>Accounting</topic><topic>Accounting standards</topic><topic>Companies</topic><topic>derivative disclosures</topic><topic>Derivatives</topic><topic>Hedging</topic><topic>information asymmetry</topic><topic>investor attention</topic><topic>Organizational performance</topic><topic>PIN</topic><topic>SFAS 161</topic><topic>stock liquidity</topic><topic>Trading</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>He, Guanming</creatorcontrib><creatorcontrib>Ren, Helen Mengbing</creatorcontrib><creatorcontrib>Taffler, Richard</creatorcontrib><collection>ECONIS</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The journal of futures markets</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>He, Guanming</au><au>Ren, Helen Mengbing</au><au>Taffler, Richard</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Do enhanced derivative disclosures work? An informational perspective</atitle><jtitle>The journal of futures markets</jtitle><date>2022-01</date><risdate>2022</risdate><volume>42</volume><issue>1</issue><spage>24</spage><epage>60</epage><pages>24-60</pages><issn>0270-7314</issn><eissn>1096-9934</eissn><abstract>Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects of derivatives usage on firm performance. Using a hand‐collected sample of US listed firms and a difference‐in‐differences research design, we find that, compared with nonderivative‐users, derivative‐users compliant with SFAS 161 experience a significantly greater reduction in stock illiquidity and the probability of informed trading in the post‐SFAS 161 period, and such impact is evident only for firms with a high degree of investor attention.</abstract><cop>Hoboken</cop><pub>Wiley Periodicals Inc</pub><doi>10.1002/fut.22275</doi><tpages>37</tpages><orcidid>https://orcid.org/0000-0001-6721-6269</orcidid><orcidid>https://orcid.org/0000-0003-1621-8533</orcidid><orcidid>https://orcid.org/0000-0002-4879-6795</orcidid><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0270-7314 |
| ispartof | The journal of futures markets, 2022-01, Vol.42 (1), p.24-60 |
| issn | 0270-7314 1096-9934 |
| language | eng |
| recordid | cdi_proquest_journals_2607500309 |
| source | Business Source Complete; Wiley Online Library All Journals |
| subjects | Accounting Accounting standards Companies derivative disclosures Derivatives Hedging information asymmetry investor attention Organizational performance PIN SFAS 161 stock liquidity Trading |
| title | Do enhanced derivative disclosures work? An informational perspective |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-12T01%3A45%3A15IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Do%20enhanced%20derivative%20disclosures%20work?%20An%20informational%20perspective&rft.jtitle=The%20journal%20of%20futures%20markets&rft.au=He,%20Guanming&rft.date=2022-01&rft.volume=42&rft.issue=1&rft.spage=24&rft.epage=60&rft.pages=24-60&rft.issn=0270-7314&rft.eissn=1096-9934&rft_id=info:doi/10.1002/fut.22275&rft_dat=%3Cproquest_cross%3E2607500309%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2607500309&rft_id=info:pmid/&rfr_iscdi=true |