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A review of derivatives research in accounting and suggestions for future work

aJ.M. Tull School of Accounting, Terry College of Business, University of Georgia, Athens, GA, 30602-6252, United States
bDepartment of Accounting, The College of Business, Florida State University, Tallahassee, FL, 32304, United States

Journal of Accounting Literature

ISSN: 0737-4607

Article publication date: 19 February 2019

Issue publication date: 30 June 2019



This paper provides a review of research on financial derivatives, with an emphasis on and comprehensive coverage of research published in 15 top accounting journals from 1996 to 2017. We begin with some brief institutional details about derivatives and then summarize studies explaining when and why firms use derivatives. We then discuss the evolution of the accounting rules related to derivatives (and associated disclosure requirements) and studies that examine changes in these requirements over the years. Next, we review the literature that examines the consequences of firms’ derivative use to various capital market participants (i.e., managers, analysts, investors, boards of directors, etc.), with an emphasis on the role that the accounting and disclosure rules play in such consequences. Finally, we discuss the importance of industry affiliation on firms’ derivative use and the role that industry affiliation plays in derivatives research. Overall, our review suggests that, perhaps due to their inherent complexity and data limitations, derivatives are relatively understudied in accounting, and we highlight several areas where future research is needed.



Campbell, J.L., Mauler, L.M. and Pierce, S.R. (2019), "A review of derivatives research in accounting and suggestions for future work", Journal of Accounting Literature, Vol. 42 No. 1, pp. 44-60.



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