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The usefulness of derivative-related disclosure: evidence from major Australian banks.

Li, Steven and Gao, Simon S (2007) The usefulness of derivative-related disclosure: evidence from major Australian banks. International Journal of Accounting Auditing and Performance Evaluation, 4 (3). pp. 248-262. ISSN 1740 8016

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Abstract/Description

In recent years, there has been an increasing public demand for firms, especially financial institutions, to disclose more information related to derivatives due to a series of high profile financial scandals. A number of countries have established accounting and reporting standards for derivative instruments. Limited research on the usefulness and quality of derivative related disclosures are mostly based on the US. This paper examines the usefulness of derivative related disclosure in the Australian banking sector. We first review the policy and requirements for derivative related disclosures in the Australian banking sector. Then we investigate the usefulness of derivative related disclosures based on a sample from major Australian banks. Our preliminary empirical results reveal that the disclosure of principal amounts and credit disclosure appear to be insignificant to stock returns. However, the disclosures of fair gains and losses for both trading and non-trading derivatives are significant to the stock returns.

Item Type: Article
Print ISSN: 1740 8016
Uncontrolled Keywords: derivatives; disclosure; Australian banks; Australia; principal amounts; credit disclosure; stock returns; fair gains; losses.
University Divisions/Research Centres: The Business School > School of Accounting, Financial Services and Law
Dewey Decimal Subjects: 600 Technology > 650 Management & public relations > 658 General management
Library of Congress Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Item ID: 4919
Depositing User: Mrs Lyn Gibson
Date Deposited: 25 Jan 2012 09:54
Last Modified: 14 Mar 2013 16:24
URI: http://researchrepository.napier.ac.uk/id/eprint/4919

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