Article ID Journal Published Year Pages File Type
10487997 Journal of Financial Stability 2013 13 Pages PDF
Abstract
► We use banks' use of financial derivatives as a proxy for opacity. ► We test how financial derivatives affect banks' informational structure and future crash risk. ► We find the use of financial derivatives is positively related to stock price synchronicity. ► We find good governance mitigates the adverse impact of the use of financial derivatives. ► We find the use of interest rate derivatives is also positively related to future stock crash risk.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics, Econometrics and Finance (General)
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Financial derivatives, opacity, and crash risk: Evidence from large US banks
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