The Impacts of SFAS No. 34 and No. 36 on the Corporate Use of Derivatives and the Relationships between Corporate Characteristics and the Use of Derivatives
| Autor: | Chao-Chi Huang, 黃昭綺 |
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| Rok vydání: | 2008 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 96 This study focuses on two issues: one is “the impacts of SFAS NO. 34 and SFAS NO. 36 on the corporate use of derivatives,” and the other one is “the relationships between corporate characteristics and the use of the derivatives.” The latter one can be separated into two sections. The fist section discusses which corporate characteristics are the determinants of the use of derivatives, and the second section discusses the relationships between the degree of the use of derivatives and the corporate characteristics. The Empirical evidences are as following: In the first issue, I find that the degree of corporate use of derivatives decreases after SFAS NO. 34 and SFAS NO. 36 come into effect. In addition, I find the phenomenon that firms close the derivatives contracts before the end of year 94 to avoid the new rules in year 95, which require entities to recognize all derivatives as assets or liabilities at their fair value on the balance sheet. In the second issue, I find that firm size, financial leverage, interest coverage ratio, managerial ownership, export ratio and dividend payout ratio significantly affect companies’ motivation to use derivatives; when the firm size is larger, financial leverage is higher, interest coverage ratio is lower, managerial ownership is higher, export ratio is higher and dividend payout ratio is higher, companies are more likely to use derivatives. However, only financial leverage and dividend payout ratio significantly affect the degree of the use of derivatives; when the financial leverage is higher and dividend payout ratio is higher, the degree of corporate use of derivatives is larger. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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