Risk management: disclosure effects
Contenido de la obra
Contenido de la obra
Registro bibliográfico
Registro
- Título: Risk management: disclosure effects
- Autor: Diez, Juan Francisco; Gutiérrez, Javier
- Publicación original: 2009
- Descripción física: PDF
-
Nota general:
-
This thesis explores the effect of disclosure on risk management policies. Following recent theory on risk management, with market imperfections, risk management creates value by reducing the volatility of the cash flows. Those risk policies are conditioned by actual disclosure rules that reduce information asymmetry between managers and shareholders, providing a comprehensive view of the firm.
However, disclosure gives different accounting choices, hence affecting the decision-making process of managers. The purpose of this thesis is to establish if managers adapt their actual risk policy to disclosure rules. Specifically, we discuss how managers make decisions regarding exchange rate risk in forecasted transactions. In addition, we discuss how hedging affects valuation by using an investor perspective. This is done through the analysis of the automotive industry in Sweden, Germany and France and the considerations of analysts and auditors.
We found that risk management policies are affected by accounting rules and that analysts are aware of those effects but have problems to measure them. However, not enough evidence was found to prove that managers try to avoid the volatility the fair value option brings when hedging a forecasted flow.
-
This thesis explores the effect of disclosure on risk management policies. Following recent theory on risk management, with market imperfections, risk management creates value by reducing the volatility of the cash flows. Those risk policies are conditioned by actual disclosure rules that reduce information asymmetry between managers and shareholders, providing a comprehensive view of the firm.
- Notas de reproducción original: Digitalización realizada por la Biblioteca Virtual del Banco de la República (Colombia)
-
Notas:
- Suecia
- Resumen: Accounting options; Agency costs; Bankrupcy costs; Corporate finance; Disclosure; Fair value accounting; Financial distress; Financial instruments; Hedge accounting; Information assimetry; Market efficiency; Risk management
- © Derechos reservados del autor
- Colfuturo
- Forma/género: tesis
- Idioma: inglés
- Institución origen: Biblioteca Virtual del Banco de la República
-
Encabezamiento de materia:
