Panaretou, A. and Shackleton, M. B. and Taylor, P. A. (2013) Corporate risk management and hedge accounting. Contemporary Accounting Research, 30 (1). pp. 116-139. ISSN 0823-9150 (In Press)Full text not available from this repository.
Motivated by the debate about the economic consequences of mandatory adoption of International Financial Reporting Standards (IFRS), this study investigates the effect of hedge accounting under IFRS on corporate risk management. Using a sample of large UK non-financial firms from 2003 to 2008, we show that the implementation of the new standards reduces the level of asymmetric information faced by derivative users. Specifically, for firms that hedge under IFRS we find that analysts’ forecast error and dispersion are significantly lower. The paper contributes to prior research on the effects of hedge accounting and on the adoption of IFRS.
|Journal or Publication Title:||Contemporary Accounting Research|
|Uncontrolled Keywords:||derivatives ; hedging ; asymmetric information ; hedge accounting|
|Subjects:||H Social Sciences > HF Commerce > HF5601 Accounting|
|Departments:||Lancaster University Management School > Accounting & Finance|
|Deposited On:||11 Jul 2011 19:37|
|Last Modified:||16 Apr 2013 11:56|
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