The Effect of Derivatives Usage on Earnings Volatility
碩士 === 雲林科技大學 === 會計系研究所 === 99 === The Financial Accounting Standards Board in Taiwan issued and enforced Statement of Financial Accounting Standards No.34 in 2006 (hereafter, FASB NO.34). This standard triggers more transparent disclosure of accounting information. Prior studies reveal that manage...
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ndltd-TW-099YUNT53850152015-10-13T20:27:51Z http://ndltd.ncl.edu.tw/handle/18369199781023949702 The Effect of Derivatives Usage on Earnings Volatility 衍生性金融商品使用程度對盈餘波動性之影響 JHONG-PING LIN 林中屏 碩士 雲林科技大學 會計系研究所 99 The Financial Accounting Standards Board in Taiwan issued and enforced Statement of Financial Accounting Standards No.34 in 2006 (hereafter, FASB NO.34). This standard triggers more transparent disclosure of accounting information. Prior studies reveal that managers can use derivatives to avoid business risk and to reduce earnings volatility. However, the motivation of derivatives usage can be divided into hedging and speculation. Thus, this study is motivated to classify derivatives users as a “hedger” and a “speculator” and then investigates the effect of derivatives usage on earnings volatility. The empirical results show that “hedger” derivatives user has lower earnings volatility. It reveals that managers can use derivatives to hedge and reduce interest rate, foreign exchange rate and commodity price risk of changes. In addition, it is found that firms seem to enhance risk management policies and efficiently reduce the cash flow volatility after FASB No.34. CHING-LUNG CHEN 陳慶隆 2011 學位論文 ; thesis 64 zh-TW |
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碩士 === 雲林科技大學 === 會計系研究所 === 99 === The Financial Accounting Standards Board in Taiwan issued and enforced Statement of Financial Accounting Standards No.34 in 2006 (hereafter, FASB NO.34). This standard triggers more transparent disclosure of accounting information. Prior studies reveal that managers can use derivatives to avoid business risk and to reduce earnings volatility. However, the motivation of derivatives usage can be divided into hedging and speculation. Thus, this study is motivated to classify derivatives users as a “hedger” and a “speculator” and then investigates the effect of derivatives usage on earnings volatility.
The empirical results show that “hedger” derivatives user has lower earnings volatility. It reveals that managers can use derivatives to hedge and reduce interest rate, foreign exchange rate and commodity price risk of changes. In addition, it is found that firms seem to enhance risk management policies and efficiently reduce the cash flow volatility after FASB No.34.
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CHING-LUNG CHEN |
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CHING-LUNG CHEN JHONG-PING LIN 林中屏 |
author |
JHONG-PING LIN 林中屏 |
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JHONG-PING LIN 林中屏 The Effect of Derivatives Usage on Earnings Volatility |
author_sort |
JHONG-PING LIN |
title |
The Effect of Derivatives Usage on Earnings Volatility |
title_short |
The Effect of Derivatives Usage on Earnings Volatility |
title_full |
The Effect of Derivatives Usage on Earnings Volatility |
title_fullStr |
The Effect of Derivatives Usage on Earnings Volatility |
title_full_unstemmed |
The Effect of Derivatives Usage on Earnings Volatility |
title_sort |
effect of derivatives usage on earnings volatility |
publishDate |
2011 |
url |
http://ndltd.ncl.edu.tw/handle/18369199781023949702 |
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