Behavioral Implications of the Sec Market Risk Disclosures
38 Pages Posted: 10 Mar 2000
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
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Experimental Research in Financial Accounting
By Robert Libby, Robert J. Bloomfield, ...
-
Comprehensive Income Disclosures and Analysts' Valuation Judgments
By D. Eric Hirst and Patrick E. Hopkins
-
Fair Values, Comprehensive Income Reporting, and Bank Analysts' Risk and Valuation Judgments
By D. Eric Hirst, Patrick E. Hopkins, ...
-
Purchase, Pooling, and Equity Analysts' Valuation Judgments
By Patrick E. Hopkins, Richard W. Houston, ...
-
Directional Preferences, Information Processing, and Investors' Forecasts of Earnings
-
Directional Preferences, Information Processing, and Investors' Forecasts of Earnings
-
The 'Incomplete Revelation Hypothesis' and Financial Reporting
-
Using Psychology Theories in Archival Financial Accounting Research
By Lisa Koonce and Molly Mercer
-
Cheap Talk, Fraud and Adverse Selection in Financial Markets: Some Experimental Evidence
By Robert Forsythe, Russell J. Lundholm, ...