DOES DERIVATIVE INSTRUMENTS USE INCREASE ACCOUNTING PERFORMANCE OF BANKS IN EMERGING AND RECENTLY DEVELOPED COUNTRIES?

According to literature, principal findings reveal that by using derivatives banks in developed countries improve their performance. The purpose of this paper is to examine the impact of four derivative instruments (forwards, swaps, options and futures) used by banks in both emerging and recently de...

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Bibliographic Details
Published inSavings and development Vol. 40; no. 1; pp. 75 - 101
Main Authors Keffala, Mohamed Rochdi, de Peretti, Christian
Format Magazine Article
LanguageEnglish
Published Milan Research Center on International Cooperation of the University of Bergamo 01.01.2016
University of Bergamo
Subjects
Hedging
Industrialized nations
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Summary:According to literature, principal findings reveal that by using derivatives banks in developed countries improve their performance. The purpose of this paper is to examine the impact of four derivative instruments (forwards, swaps, options and futures) used by banks in both emerging and recently developed countries on accounting performance. Overall sample is defined by 137 banks from both emerging and recently developed countries covering the period 2003-2010. Contrarily to expectations, overall findings indicate that derivative instruments decrease bank performance in the case of these countries.
ISSN:0393-4551