The Effect of Derivatives Usage on the Relative Value-relevance of Accounting Numbers
碩士 === 雲林科技大學 === 會計系研究所 === 99 === The ongoing growth in use of financial instruments together with the accompanying disclosure requirements debate has motivated this study to examine the role of derivatives usage on the value-relevance of accounting numbers. Especially, this study divides the enti...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2011
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| Online Access: | http://ndltd.ncl.edu.tw/handle/18241690700298806333 |
| Summary: | 碩士 === 雲林科技大學 === 會計系研究所 === 99 === The ongoing growth in use of financial instruments together with the accompanying disclosure requirements debate has motivated this study to examine the role of derivatives usage on the value-relevance of accounting numbers. Especially, this study divides the entire sample into hedging- versus non-hedging-purposes derivatives usage sub-sample and examines whether various derivative usage motives trigger distinct effects on value-relevance of earnings and equity book value. The empirical results reveal that, as conjectured, firms with large magnitude of hedging-purpose derivatives usage have higher value-relevance of earnings and equity book value. On the other coin, firms with large magnitude of non-hedging-purpose derivatives usage have lower value-relevance of earnings and equity book value. This study implements several diagnostic checks and demonstrates the empirical results are robust to various specifications.
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