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

Steven Li and Simon Gao

International Journal of Accounting, Auditing and Performance Evaluation, 2007, vol. 4, issue 3, 248-262

Abstract: 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.

Keywords: derivatives; disclosure; Australian banks; Australia; principal amounts; credit disclosure; stock returns; fair gains; losses. (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=16280 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijaape:v:4:y:2007:i:3:p:248-262

Access Statistics for this article

More articles in International Journal of Accounting, Auditing and Performance Evaluation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().