Evidence on voluntary disclosures of derivatives usage by large US companies

Derivatives have been blamed in recent years for many financial disasters and there is evidence that disclosure influences hedging activity and corporate value. Nevertheless, standards for the mandatory disclosure of derivatives usage have been very controversial. This paper examines the nature and determinants of voluntary disclosures of currency derivatives usage by large industrial firms under SFAS 107 and has implications for the new derivatives disclosures under SFAS 133. This study documents that, consistent with higher ...