Use of derivatives in public sector organizations

Tim Brailsford*, Richard Heaney, Barry Oliver

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

4 Citations (Scopus)

Abstract

The present paper develops and tests a model explaining public sector derivative use in terms of budget discrepancy minimization. The model is different from private sector models. Private sector models do not readily translate into the public sector, which typically faces different objectives. Hypotheses are developed and tested using logistic regression over a sample of Australian Commonwealth public sector organizations. It is found that public sector organization derivative use is positively correlated with liabilities and size consistent with the hypotheses concerning budget discrepancy management.

Original languageEnglish
Pages (from-to)43-66
Number of pages24
JournalAccounting and Finance
Volume45
Issue number1
DOIs
Publication statusPublished - Mar 2005
Externally publishedYes

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