文档介绍：本科毕业论文(设计)
外文翻译
外文题目 Investor reactions to derivative use and es
外文出处/content/P65x262143739
418/2007:2-6
外文作者 Lisa Koonce;Marlys Gascho Lipe;Mary Lea McAnally
原文:
Investor reactions to derivative use and es
Abstract
How do investors evaluate managers who choose whether or not to use derivatives once the es of those decisions e known? Different theories offer different predictions, and we test these in three experiments. Results show that investors are more satisfied with firm managers and assign a higher value to firms when managers use derivatives (that address firm risks) than when they do not. This result occurs even though we hold constant the economic differences typically present paring derivative use versus non-use (that is, exante risk and expost e), suggesting that investors reward firms that use derivatives. Additional tests reveal that investors believe that managers who use derivatives in these situations exhibit a higher level of decision-making care than those who do not use derivatives. We also document that these inferences about greater decision- making care do not apply to the speculative use of derivatives. Overall, our study adds to our understanding of how investors panies that use derivatives, given the resulting es of such use.
Keywords Derivatives ; Investors ; Psychology ; es
Evidence suggests that firm managers are concerned about how current and potential investors perceive the firm’s use of derivatives. For example, a survey of
managers of . nonfinancial firms found that 65% of them reported concern over investor, regulator, and public perceptions of derivative use (Bodnar et al. 1998). Many of these managers cited this concern as an important determinant in their decision not to use derivatives. Prior research suggests that these concerns may be justified. Koonce et al. (2005) report that investors perceive derivatives to be riskier than nonderivative financial instruments. Although the Koonce et al. results suggest that managers