Hedge accounting and firms’ future investment spending

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-11-15 DOI:10.1016/j.frl.2024.106477

Andreas Kreß , Brigitte Eierle , Sven Hartlieb , Francesco Mazzi

引用次数: 0

Abstract

Finance theory suggests that effective hedging reduces cash flow volatility, enabling firms to invest in profitable projects they might otherwise avoid. We argue that this association holds only for derivatives designated for hedge accounting, which requires the fulfillment of strict effectiveness criteria. Our evidence shows that only designated derivatives are positively associated with future investments, indicating that hedge accounting serves as a helpful signaling device for stakeholders regarding the success of firms’ hedging programs. However, firms using complex hedging strategies seem unable to designate some of their successful derivatives due to the often-criticized strict criteria for hedge accounting.

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对冲会计与企业未来的投资支出

金融理论认为，有效的套期保值可以降低现金流的波动性，使企业能够投资于原本可能会避免的盈利项目。我们认为，这种关联只适用于对冲会计指定的衍生工具，因为对冲会计要求满足严格的有效性标准。我们的证据显示，只有指定的衍生品与未来投资呈正相关，这表明对冲会计是一种有用的信号装置，能让利益相关者了解企业对冲计划的成功与否。然而，由于套期会计的严格标准经常受到批评，使用复杂套期策略的公司似乎无法指定一些成功的衍生工具。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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