Behavioral Implications of the Sec Market Risk Disclosures

Koonce, Lisa; McAnally, Mary Lea; Hodder, Leslie D.

doi:10.2139/ssrn.213474

Behavioral Implications of the Sec Market Risk Disclosures

38 Pages Posted: 10 Mar 2000

See all articles by Lisa Koonce

Mary Lea McAnally

Texas A&M University - Department of Accounting

Leslie D. Hodder

Indiana University - Kelley School of Business - Department of Accounting

Date Written: February 2000

Abstract

In this paper, we draw on judgment and decision making research to examine the behavioral implications of the SEC's Financial Reporting Release No. 48 on derivative and market risk disclosures. While these disclosures have been examined from an empirical point of view, no research has investigated how these disclosures might affect the users. The purpose of our paper is to identify and analyze the behavioral implications of the new risk disclosures. We draw on research done in the judgment and decision making arena to analyze the likely behavioral consequences of these disclosures. Our paper identifies a number of areas for future research on the important topic of market risk.

JEL Classification: M41, M45

Suggested Citation: Suggested Citation

Koonce, Lisa L. and McAnally, Mary Lea and Davis Hodder, Leslie D., Behavioral Implications of the Sec Market Risk Disclosures (February 2000). Available at SSRN: https://ssrn.com/abstract=213474 or http://dx.doi.org/10.2139/ssrn.213474