The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
The impact of derivatives on firm risk: An empirical examination of new derivative users
Open accessAbstract
The appropriateness of financial reporting rules for derivative securities depends on corporations' reasons for using the instruments. Empirically, little is documented about how the instruments affect firms' risk exposures. This study examines derivatives' roles in firms initiating derivatives use. The results are consistent with firms using derivatives to hedge, and not to increase, entity risk. Firm risk (measured several ways) declines following derivatives use. Realized risk reductions and decisions to initiate derivatives programs vary across firms with the expected benefits from hedging. The findings emphasize the importance of hedge-accounting rules that incorporate the impact of derivatives and hedged items simultaneously.
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Citations
Cites
The pricing of options and corporate liabilities
Black, F., & Scholes, M. (1973) · Journal of Political Economy · doi:10.1086/260062 · Cited by 29,074
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
Cited by
Is cash negative debt? A hedging perspective on corporate financial policies
Acharya, V. V., Almeida, H., & Campello, M. (2007) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2007.04.001 · Cited by 893
How much do firms hedge with derivatives?
Guay, W., & Kothari, S. P. (2003) · Journal of Financial Economics · doi:10.1016/s0304-405x(03)00179-x · Cited by 607
Self-citationThe Effects of Derivatives on Firm Risk and Value
Bartram, S. M., Brown, G. W., & Conrad, J. (2011) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109011000275 · Cited by 429
Does the Use of Financial Derivatives Affect Earnings Management Decisions?
Barton, J. (2001) · The Accounting Review · doi:10.2308/accr.2001.76.1.1 · Cited by 412
Financial distress and corporate risk management: Theory and evidence
Purnanandam, A. (2008) · Journal of Financial Economics · doi:10.1016/j.jfineco.2007.04.003 · Cited by 363
Metadata
- Authors
- Guay, W. R.
- Venue
- Journal of Accounting and Economics
- Publisher
- Elsevier BV
- Published
- 1999-01
- Volume
- 26
- Issue
- 1-3
- Pages
- 319-351
- ISSN
- 0165-4101 (ISSN-L)
- OpenAlex
- W2039627964
- Cited by
- 410
- References
- 2
- FWCI
- 49.27
- Type
- journal article
- Language
- en
- Open access
- hybrid
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- Guay, W. R. (1999). The impact of derivatives on firm risk: An empirical examination of new derivative users. Journal of Accounting and Economics. https://doi.org/10.1016/s0165-4101(98)00032-9
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
