外文翻译--投资者对衍生金融工具运用及其收效的反应（节选）

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1、4158 汉字， 2300 单词 本科毕业论文（设计） 外文翻译 外文题目 Investor reactions to derivative use and outcomes 外文出处 Koonce L, Lipe M G, McAnally M L. Investor reactions to derivative use and outcomesJ. Review of Accounting studies, 2008, 13(4): 571-597. 原文： Investor reactions to derivative use and outcomes Abstract How do

2、 investors evaluate managers who choose whether or not to use derivatives once the outcomes of those decisions become knownfi Different theories offer different predictions, and we test these in three experiments. Results show that investors are more satisfied with firm managers and assign a higher

3、value to firms when managers use derivatives that address firm risks than when they do not. This result occurs even though we hold constant the economic differences typically present when comparing derivative use versus non-use that is, exante risk and expostoutcome , suggesting that investors rewar

4、d firms that use derivatives. Additional tests reveal that investors believe that managers who use derivatives in these situations exhibit a higher level of decision-making care than those who do not use derivatives. We also document that these inferences about greater decision- making care do not a

5、pply to the speculative use of derivatives. Overall, our study adds to our understanding of how investors judge companies that use derivatives, given the resulting outcomes of such use. Keywords: Derivatives； Investors； Psychology； Outcomes Evidence suggests that firm managers are concerned about ho

6、w current and potential investors perceive the firms use of derivatives. For example, a survey of managers of U.S. nonfinancial firm s found that 65% of them reported concern over investor, regulator, and public perceptions of derivative use Bodnar et al. 1998 . Many of these managers cited this con

7、cern as an important determinant in their decision not to use derivatives. Prior research suggests that these concerns may be justified. Koonce et al. 2005 report that investors perceive derivatives to be riskier than nonderivativefinancial instruments. Although the Koonce et al. results suggest tha

8、t managers concerns may be reasonable ex ante, it is unclear how investors think about companies use of derivatives in the common situation where outcomes related to their use are known that is, ex post . This situation is the focus of our study. Outcomes from the use of derivatives are readily avai

9、lable to investors from several sources, most notably from the financial statements. 1 Specifically, SFAS133 requires that firms report derivative-related outcomes in the financial statements, including the comprehensive income statement, balance sheet, and footnotes Kawaller 2004； Ahmed et al. 2006

10、 . Investors also can obtain outcome information from press releases in which firms may voluntarily disclose results from derivative use, typically with a focus on favorable outcomes for example, Southwest Airlines 2005 . Finally, investors can infer outcomes given generally available information re

11、garding market rate changes and information disclosed in prior financial statements about the type of derivatives used by a firm Hodder et al. 2001 . Investigating investors perceptions of derivative use once actual outcomes are known is important for several reasons. First, studies provide evidence

12、 that derivative use can add value to firms. For example, Allayannis and Weston 2001 document a 4% increase in firm value that is, a hedging premia for large firms that hedge their foreign currency exposure by using derivatives. Guay 1999 shows that market-based firm risk is lower for new users of d

13、erivatives. These studies suggest that there may be important benefits from derivative use so that if firms avoid using derivatives due to a mistaken concern over potentially negative investor reactions, both the firms and investors may suffer economically. Second, research has not addressed whether

14、 the negative ex ante perceptions of derivative use documented in prior research Koonce et al. 2005 will persist once actual outcomes are known (that is, expost) . While psychologys counterfactual reasoning theory suggests that it might, such behavior is not assured. Research shows that how people t

15、hink in foresight often does not correspond to their thinking in hindsight, given outcome information Fischhoff and Beyth1975 . Thus, in addition to the possibility of a negative reaction to derivative use, there are two other also theoretically based possible investor reactions. Specifically, inves

16、tors may not care whether a firm uses derivatives but rather may react only to the outcome itself Mitchell and Kalb 1981 . Alternatively, investors may react positively toward companies that use derivatives because of the perceived decision-making care their use implies and do so irrespective of the

17、 particular outcome Reb and Connolly 2007 . Because psychology theories support each of these possible reactions, research is needed to provide evidence on how investors evaluate firms that use derivatives once actual outcomes are known. In this paper, we report the results of three experiments desi

18、gned to identify how investors react to derivative use. In our first experiment, we discriminate among the three possible theories noted above. Once we establish the most descriptive theory of investor reactions, we then test its validity and generalizability in two subsequently designed and execute

19、d experiments. We discuss the three experiments below. As noted above, the first experiment discriminates among the three possible theories for investor reaction to the use of derivatives once derivative-use outcomes are known. We vary whether a company uses a derivative that is, forward contract to

20、 lock in the price of a planned inventory purchase, and we also vary the outcome that is, poor or good that results from the derivative or nonderivative use. Our results show that, holding outcome constant, investors are more satisfied when a company uses derivatives. Specifically, they reward compa

21、nies for using derivatives by boosting their evaluation of management； this result is consistent with investors inferring that the managers exercised high decision-making care in choosing to use the derivative to address the risk exposure. Given that experiment one points to decision-making care as

22、a theory of investor reaction to outcomes from derivative use, our second experiment tests the validity of this theory by directly varying information regarding decision-making care that is, whether the company discloses extensive policies and procedures for its corporate financing decisions as well

23、 as whether management uses a derivative instrument. Results confirm the descriptive validity of the decision-making care theory. Without information regarding careful decision-making, investors are more satisfied and assign a higher firm value when managers use derivatives that address an exposure

24、than when managers do not. In contrast, when investors are provided with information about the managers careful decision-making process as often found in financial statement footnotes and MD&A disclosures , the derivative effect is eliminated because perceived decision-making care has been held cons

25、tant. While experiment one results are consistent with the decision-making care theory, experiment two confirms that perceived decision-making care is causing the heightened investor satisfaction associated with derivative use. Our third experiment tests whether the decision-making care perspective

26、is comprehensive. In this experiment, participants evaluate a situation where a poor outcome resulted from a firm using a derivative either for purposes of taking a view that is, speculating on commodity prices or for addressing a commodity- price risk exposure. Results indicate that participants pe

27、rceive lower higher decision-making care in the situation where managers use derivatives to take a view address an exposure . Even though the derivative use leads to the same economic outcome in both cases, participants judge different levels of satisfaction with management depending on the level of

28、 perceived decision-making care. This finding reiterates that perceived decision-making care guides how investors react to managers derivative decisions and to the resulting outcomes .In sum, perceived decision-making care comprehensively explains investor reaction to derivative use. For several rea

29、sons, we use experiments to test our hypotheses Libby et al. 2002 . First, experiments allow us to directly measure how individual investors view companies use or non-use of derivatives. Although normative models do not exist to indicate whether investors impressions are correct in this context, it is important to