Do Risk Disclosures Relating to the Use of Financial Instruments Matter? Evidence from the Australian Metals and Mining Sector

IF 2 Q2 BUSINESS, FINANCE

International Journal of Accounting Pub Date : 2019-12-12 DOI:10.1142/S1094406019500173

Kevin Huu Phat Thai, J. Birt

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引用次数: 5

Abstract

This paper investigates the value relevance of risk disclosures relating to the use of financial instruments in the Australian metals and mining sector. The metals and mining sector is the largest sector in Australia by the number of companies and includes several of the world’s largest diversified resource producers. Using a manually constructed disclosure index based on AASB 7 Financial Instruments: Disclosures, we find that financial instrument-related risk disclosures provide useful information to equity investors. In terms of individual risk category, liquidity risk is shown to be the most informative risk disclosure. We contribute to a stream of the literature examining the informativeness of risk disclosures. The results of this study have implications for several stakeholders regarding the quality assessment of risk reporting. In addition, the findings are of interest to standard setters since further regulatory changes are under consideration to improve the presentation and disclosure of financial instruments.

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与金融工具使用有关的风险披露是否重要?来自澳大利亚金属和矿业部门的证据

本文调查了与澳大利亚金属和采矿业使用金融工具有关的风险披露的价值相关性。金属和采矿业是澳大利亚公司数量最多的行业，其中包括几家世界上最大的多元化资源生产商。使用基于AASB 7金融工具披露的人工构建的披露指数，我们发现金融工具相关风险披露为股权投资者提供了有用的信息。就个别风险类别而言，流动性风险是最具资讯性的风险披露。我们为一系列研究风险披露的信息量的文献做出了贡献。本研究的结果对几个利益相关者关于风险报告的质量评估有启示。此外，标准制定者对调查结果也很感兴趣，因为他们正在考虑进一步的监管改革，以改善金融工具的列报和披露。

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

International Journal of Accounting BUSINESS, FINANCE-

CiteScore

1.20

自引率

0.00%

发文量

期刊介绍： The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.