Asia Pacific banks' derivative and risk management disclosures

Hue Hwa au Yong, Keryn Chalmers, Robert Faff

Research output: Contribution to journalReview articleResearchpeer-review

5 Citations (Scopus)

Abstract

This study investigates Asia Pacific banks' annual report disclosures on derivatives using the Basel Committee and IOSCO joint recommendations as the derivative and risk management disclosure benchmark. Based on our constructed disclosure index, the mean score is 35%, suggesting that many of the disclosure recommendations are not being adopted by the banks in our sample. Cross-country and regional variation exists in the disclosure practices, with the variation associated with the extent to which accounting regulations for derivative instruments are operational. Hong Kong banks have the highest mean disclosure scores while the Philippines banks have the lowest mean disclosure scores. Australasian banks generally provide more disclosures than East Asian and South East Asian banks, and banks in developed countries generally have a higher level of disclosure relative to developing countries. The transparency of derivative activities by the banks is expected to improve as Asia Pacific countries promulgate accounting regulations congruent with international accounting standards.

Original languageEnglish
Pages (from-to)15-44
Number of pages30
JournalAsian Review of Accounting
Volume13
Issue number1
DOIs
Publication statusPublished - 1 Jan 2005
Externally publishedYes

Fingerprint

Dive into the research topics of 'Asia Pacific banks' derivative and risk management disclosures'. Together they form a unique fingerprint.

Cite this