{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/90549"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/90549","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Real and accounting effects of mandatory derivatives disclosures","abstract":"I examine whether SFAS 161 derivatives disclosures affect corporate risk management behavior. First, I find that the adoption of SFAS 161 has real effects on firms’ risk management strategy, resulting in lower overall derivatives use and speculation with derivatives. Second, I find that SFAS 161 also has an accounting effect as managers seem to avoid hedge accounting, and prefer to use non-designated derivatives after the introduction of the standard. Finally, I develop a new method to determine whether the accounting designation of derivatives informs financial statement users of their economic use (speculate or hedge). My findings show that, while the accounting designation of derivatives is informative of their economic use in general, it is less informative after the adoption of SFAS 161. Overall, firms’ response to SFAS 161-derivatives disclosures is mixed. On the one hand, firms engage in more prudent risk management, decreasing the extent to which they speculate with derivatives. On the other hand, firms reduce the extent of overall derivatives use, which may lower the benefits associated with hedging derivatives.","abstract_html":"I examine whether SFAS 161 derivatives disclosures affect corporate risk management behavior. First, I find that the adoption of SFAS 161 has real effects on firms’ risk management strategy, resulting in lower overall derivatives use and speculation with derivatives. Second, I find that SFAS 161 also has an accounting effect as managers seem to avoid hedge accounting, and prefer to use non-designated derivatives after the introduction of the standard. Finally, I develop a new method to determine whether the accounting designation of derivatives informs financial statement users of their economic use (speculate or hedge). My findings show that, while the accounting designation of derivatives is informative of their economic use in general, it is less informative after the adoption of SFAS 161. Overall, firms’ response to SFAS 161-derivatives disclosures is mixed. On the one hand, firms engage in more prudent risk management, decreasing the extent to which they speculate with derivatives. On the other hand, firms reduce the extent of overall derivatives use, which may lower the benefits associated with hedging derivatives.","abstract_has_math":false,"creators":["Chiorean, Raluca"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Accountancy","degree_department":null,"school":null,"contributors":["Sougiannis, Theodore","Pennacchi, George","Donohoe, Michael","Koo, David"],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2016,"date_issued":"2016-07-07T19:54:00Z","date_published":"2016-07-07T19:54:00Z","updated_at":"2026-07-22T22:26:32Z","subjects":["Corporate risk management","Derivatives","Hedge accounting","Speculation","Derivatives disclosures","SFAS 161"],"languages":["en"],"rights":["Copyright 2016 Raluca Chiorean"],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"http://hdl.handle.net/2142/90549","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Sougiannis, Theodore","Pennacchi, George","Donohoe, Michael","Koo, David"]},{"key":"dc:creator","label":"Author","values":["Chiorean, Raluca"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2016-07-07T19:54:00Z","2016-04-18","2016-05"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Accountancy"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Corporate risk management","Derivatives","Hedge accounting","Speculation","Derivatives disclosures","SFAS 161"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["en"]},{"key":"dc:rights","label":"Dc Rights","values":["Copyright 2016 Raluca Chiorean"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/90549"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["I examine whether SFAS 161 derivatives disclosures affect corporate risk management behavior. First, I find that the adoption of SFAS 161 has real effects on firms’ risk management strategy, resulting in lower overall derivatives use and speculation with derivatives. Second, I find that SFAS 161 also has an accounting effect as managers seem to avoid hedge accounting, and prefer to use non-designated derivatives after the introduction of the standard. Finally, I develop a new method to determine whether the accounting designation of derivatives informs financial statement users of their economic use (speculate or hedge). My findings show that, while the accounting designation of derivatives is informative of their economic use in general, it is less informative after the adoption of SFAS 161. Overall, firms’ response to SFAS 161-derivatives disclosures is mixed. On the one hand, firms engage in more prudent risk management, decreasing the extent to which they speculate with derivatives. On the other hand, firms reduce the extent of overall derivatives use, which may lower the benefits associated with hedging derivatives.","Submission original under an indefinite embargo labeled 'Open Access'. The submission was exported from vireo on 2016-07-07 without embargo terms","The student, Raluca Chiorean, accepted the attached license on 2016-04-15 at 21:31.","The student, Raluca Chiorean, submitted this Dissertation for approval on 2016-04-15 at 21:34.","This Dissertation was approved for publication on 2016-04-18 at 08:19.","DSpace SAF Submission Ingestion Package generated from Vireo submission #9261 on 2016-07-07 at 13:30:54","Made available in DSpace on 2016-07-07T19:54:00Z (GMT). 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Second, I find that SFAS 161 also has an accounting effect as managers seem to avoid hedge accounting, and prefer to use non-designated derivatives after the introduction of the standard. Finally, I develop a new method to determine whether the accounting designation of derivatives informs financial statement users of their economic use (speculate or hedge). My findings show that, while the accounting designation of derivatives is informative of their economic use in general, it is less informative after the adoption of SFAS 161. Overall, firms’ response to SFAS 161-derivatives disclosures is mixed. On the one hand, firms engage in more prudent risk management, decreasing the extent to which they speculate with derivatives. On the other hand, firms reduce the extent of overall derivatives use, which may lower the benefits associated with hedging derivatives.","Submission original under an indefinite embargo labeled 'Open Access'. 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